Coller Capital published its Global Private Equity Barometer report at the end of June, and based on the results, LPs are anticipating the activity in the PE market ratchet up even higher.
According to the findings roughly 50% of LPs anticipate that the frequency in which PE groups will call down and return capital to increase over the next 12 months. Meanwhile, just more than half of the LPs surveyed expect to add on to their number of GP relationships. However, only 37% of institutional investors plan to increase their allocations to alternative assets over the next year, which is a significant drop from the 56% who said they planned to do so in last year’s report.
Coller Capital CEO Jeremy Coller commented, “Institutional investors are planning to throw still more fuel on the private equity fire… but not blindly. Investors are becoming more active in managing their portfolios-recognizing and rewarding good GP performance, exiting under-performing relationships and being willing to experiment with new GPs and new areas of private equity in the hunt for superior returns.”
Other interesting findings include: 73% of respondents want to increase their number of GP relationships in Asia-Pacific; 45% have opted to not re-up with an existing GP over the past year and; LPs are more satisfied with buyout returns than VC returns, with a 54% majority “dissatisfied” with European VC returns.