How Do the Next 12 Months Look for Private Equity Investors?

by Louise Weller

  • 17 Oct 2018
  • PE

Thirty-five percent of private equity investors surveyed for the Preqin Quarterly Update: Private Equity, Q3 2018 are planning to commit at least $100mn to the asset class over the next 12 months, a proportion notably smaller than at the same time last year (50%) and in 2016 (42%). Over half (51%) of investors are looking to commit less than $50mn to private equity funds in the year ahead.

Three-quarters of surveyed private equity investors are looking to make commitments to between two and nine funds in the next 12 months. However, with investors generally planning to commit less capital in the coming year than they were at this point last year, the proportion of investors looking to make 10 or more commitments is unsurprisingly smaller (11%) than the proportion (20%) seen in Q3 2017.

Buyout remains the most favoured strategy among private equity investors, with 70% planning to target the strategy in the next 12 months. Investors also view venture capital and growth funds favourably, with 53% and 50% of investors looking to place capital in these strategies respectively in the coming year.

The majority of investors plan to commit capital to funds focused on North America (52%) and Europe (51%) in the year ahead, while almost a third (31%) will target Asia-Pacific. Furthermore, 45% of investors will look to make commitments to funds that will provide global exposure.

The Preqin Quarterly Update: Private Equity, Q3 2018 is due for release in October 2018. Please click here to see more fund search and mandates statistics.

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