Private equity must justify its role to sceptics

Over 40% of endowments and foundations, and more than a third of pension plans, say there are influential individuals within their organisations calling for allocations to private equity to be reduced or cancelled entirely.

This is despite 63% of limited partners (LPs) reporting that net lifetime returns for their private equity portfolios have been 11% or higher, according to the Global Private Equity Barometer survey by Coller Capital, an investor in private equity secondaries.

“Private equity has confirmed its core place in institutional investment portfolios since the crisis,” says Jeremy Coller, chief investment officer, Coller Capital. “However, complacency would be a mistake. With sceptics at senior levels within LP organisations, the industry will have to justify its performance again and again.”

Despite the presence of sceptics, 25% of limited partners say they plan to increase their target allocations to private equity, compared with 14% who plan to reduce it, according to the survey.

©2013 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST