Fifty-four percent of all LPs in private equity are planning to increase their allocations, a figure which stands at US$1.3trn globally, according to data published by Private Equity Intelligence.
The research shows that 41% of private equity investors are not planning any change to their allocation levels, and just 5% are intending to reduce them. Interest among LPs is strongest in Europe, Asia, Middle East and Australia, and even those in the saturated North American market are intending to continue to increase their commitment to the asset class.
North America remains the most popular source of all LP dollars globally, with the US and Canada representing 58%, and Europe 30%. New York has the highest concentration of LP money, with 230 investors contributing US$170bn, and London in second place with 184 LPs investing US$95bn. Forty-eight percent of all LP private equity dollars are located in just 10 cities worldwide.
The figures are taken from Private Equity Intelligence’s 2006 Limited Partner Universe, which is based upon a detailed analysis of investment plans of 3,195 LPs globally.
The report also finds that 57% of the larger LPs were interested in global investments, and that Europe and US were the most important sources of finance for emerging markets: 32% and 30% respectively.