Prepared in collaboration with Mergermarket, the Alternative Investments Outlook 2013 report synthesises interviews with 100 LPs operating across North America and Western Europe.
The report also provides a detailed description of the following key findings.
- Confidence and optimism about the current PE environment:
- Nearly half of LPs say that their PE investments have surpassed their expectations.
- Of those LPs who plan to adjust their allocation to PE within the next year, the overwhelming majority (95%) expect to increase the amount apportioned to the asset class.
Enthusiasm about the alternative investments climate in Europe:
- Northern Europe is most frequently mentioned by LPs as fitting with their investment strategies.
- More than half of LPs see Southern Europe – including Portugal, Spain and Italy – as offering attractive opportunities.
- Increased interest in secondary PE commitments:
- Three-quarters of LPs expect to acquire more secondary commitments.
- LPs are increasingly looking to side-step general partners (GPs) to provide direct lending to companies
Evolution of GP and LP interactions:
Nearly all LPs (98%) are communicating more frequently with their GPs.
- 63% of LPs cite timeliness of reporting as the most common problem with valuation information.
- Three out of four LPs asked GPs for greater transparency in the last 24 months.
- When choosing a fund manager, 70% of LPs said that transparency was the most important factor (ahead of strategy and performance)