Private equity must justify its role to sceptics

Survey1Over 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

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.