INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
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Strategy Appetite<br />
institutional<br />
investor<br />
sentiment<br />
survey<br />
foreword<br />
executive summary<br />
allocation<br />
fees<br />
lp – gp relationship<br />
future investments<br />
•<br />
and concerns<br />
appendix: global<br />
fundraising<br />
Source: Private Equity International<br />
LP appetite for various fund strategies shows that although venture capital and buyout<br />
funds remain popular with private equity investors, when compared to LP allocation there<br />
is a slight decline in interest for these strategies in favour of others such as secondaries<br />
and mezzanine investments. Such preferences reflect the on-going difficulties faced by<br />
the industry in the wake of the financial crisis. Following an increasing interest in the<br />
purchase of secondary fund in 2011, the market has continued to gain momentum with<br />
many LPs committing to secondaries funds, in addition to selling their own existing fund<br />
interests on the secondaries market. In addition, a number of LPs are keen to reduce the<br />
number of GP relationships they maintain, without reducing their allocation to the asset<br />
class. Mezzanine funds are also garnering increased interest, in particular following the<br />
slow recovery in the debt market which traditionally supports the kind of deals carried<br />
out from buyout funds.<br />
Sector Appetite<br />
Source: Private Equity International<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
n<br />
20%<br />
11%<br />
3%<br />
4%<br />
2%<br />
9%<br />
10%<br />
6%<br />
8%<br />
26%<br />
11%<br />
7%<br />
11%<br />
6%<br />
2%<br />
4%<br />
3%<br />
25%<br />
5%<br />
4%<br />
5%<br />
18%<br />
Buyout<br />
Fund of Funds<br />
Generalist<br />
Infrastructure<br />
Mid-Market<br />
Mezzanine<br />
Other<br />
Secondaries<br />
Turnaround<br />
Venture<br />
Biotech/Life Sciences<br />
CleanTech/Renewables<br />
Energy/Oil & Gas<br />
Financial Services<br />
Leisure/Entertainment<br />
Manufacturing<br />
Natural Resources<br />
Non Sector Specific<br />
Other<br />
Retail<br />
Transport<br />
TMT<br />
page 30<br />
LPs continue to back preferred funds which have a wider target, with a quarter of LPs<br />
specifying “no sector preference” as a future sector strategy. Another notable trend is<br />
the increase in interest in TMT, which in uncertain times is seen as a ‘safe’ investment<br />
opportunity. At present, 11 percent of LPs have allocated capital to a fund investing in<br />
TMT, however, 18 percent plan to invest in the sector in the near future.<br />
www.privateequityconnect.com