INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media

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Strategy Allocation n 22% Buyout n 13% Fund of Funds n n n n n n 1% 5% 2% 5% 12% 4% Generalist Infrastructure Mid-Market Mezzanine Other Secondaries institutional investor sentiment survey n 8% Turnaround n 29% Venture Source: Private Equity International Venture capital funds, accounting for 29 percent of LP allocation, is the preffered strategy and is followed by buyout funds which represent 22 percent of LPs’ allocation. Fund of funds also remain a popular choice given the wide exposure provided. Generalist and mid-market funds are amongst the least popular with one percent and two percent allocation, respectively. Sector Allocation foreword executive summary • allocation fees lp – gp relationship future investments and concerns appendix: global fundraising n 12% Biotech/Life Sciences n 9% CleanTech/Renewables n 12% Energy/Oil & Gas n 8% Financial Services n 3% Leisure/Entertainment n 6% Manufacturing n 3% Natural Resources n 14% Non Sector Specific n 11% Other n 6% Retail Source: Private Equity International n n 7% 11% Transport TMT Funds targeting a diverse range of sectors are the most popular choice for LPs investing in private equity, with 14 percent of LPs currently allocating capital to non-sector specific funds. LPs with a more specific sector target favour biotech/life science (12 percent) and energy (12 percent) funds. The least popular sectors include the leisure (three percent) and retail (six percent) sectors, a trend likely to be driven by the fall in consumer demand. page 7 www.privateequityconnect.com
Over the long-term, private equity provides the higher riskadjusted return institutional investor sentiment survey foreword executive summary allocation • Does your institution plan to increase its allocation to private equity in 2012? fees lp – gp relationship future investments and concerns n n n 32% 54% 14% Yes No Not sure appendix: global fundraising Source: Private Equity International page 8 Over half of surveyed respondents stated that they had no plans to increase their allocation to private equity beyond current levels. In total, 54 percent of LPs were content with their current allocation, reinforcing the belief among fund managers that fundraising has become increasingly challenging. Simultaneously, 32 percent of all respondents said they were planning to increase their private equity allocation in 2012 for a number of different reasons. Of this group, just over a third of LPs expected the private equity industry to generate better or more predictable returns in 2012. This view is consistent with the general outlook private equity is facing following a turbulent few years. The remainder of the respondents said they were unsure as to whether their private equity allocation would increase in 2012. The difficulty in finding experienced managers with good track records continues to be a stumbling block for LPs, particularly for investors looking to emerging markets as a potential destination for their capital. www.privateequityconnect.com
Page 1 and 2: Institutional Investor Sentiment Su
Page 3 and 4: institutional investor sentiment su
Page 5 and 6: LP Respondents Breakdown Where is y
Page 7: Allocation institutional investor s
Page 11 and 12: Co-investments provide LPs with gre
Page 13 and 14: Fee breaks should be negotiated dep
Page 15 and 16: Fees should be calculated in connec
Page 17 and 18: LPs are requesting a “Europeansty
Page 19 and 20: GP fund commitments should be a mea
Page 21 and 22: SWFs prefer to target sectors which
Page 25 and 26: A vast majority of LPs conduct due
Page 27 and 28: There is room for improvement with
Page 29 and 30: Focus on… Endowments Distribution
Page 31 and 32: Strategy Appetite institutional inv
Page 35 and 36: The prevalence of zombie funds has
Page 37 and 38: Private equity is coming under incr
Page 39 and 40: Fundraising by Strategy 150 institu
Page 41: Published in July 2012 by PEI Secon

INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media

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