Private equity interest boosts optimism

Investors are seeking to buy more private equity assets in the coming months, research shows.

Of the 187 private equity fund managers surveyed by financial information provider Preqin, almost half (47%) reported increased appetite from European investors.

This renewed appetite from investors has led 65% of the firms to expect private equity industry assets to expand over the next year, with just 4% expecting assets under management to decline.

This optimism in the industry is reflected by the fact that the vast majority of firms expect both deal and exit activity to increase over the next 12 months.

On a global basis, 62% of private equity managers plan to put more capital to work over the following year, with just 13% expecting to spend less.

However, valuations remain the biggest concern for fund managers in the current climate. Nearly half those in the survey said deal pricing was the biggest challenge facing the industry. A further 46% stated that pricing is higher now than it was last year.

©2016 funds europe