Private equity set for investment funds surge
More than a third (38 per cent) of global institutional investors in private equity plan to increase their allocation to the asset class over the next 12 months, according to Coller Capital’s latest Global Private Equity Barometer.
The survey also found that 80 per cent of existing investors expect a significant influx of new investors to the asset class over the next 12 months.
In tandem with this influx, 77 per cent of existing investors see the market for private equity investment skills becoming significantly more competitive over the next three years.
In fact, half of existing investors expect institutions to increase their recruitment from private equity firms as the ‘talent war’ intensifies.
Another key survey finding was that three-quarters of existing investors are worried that private equity fund managers will stray into strategies or geographies where they lack expertise.
North American investors see the danger as particularly acute, with 84 per cent of them perceiving fund manager ‘strategy drift’ as a risk to their returns.
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