INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media

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.
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