Institutional investors returning to the private equity asset class

by Kevin Neadley

  • 05 Apr 2011
  • PE

Since the 2008 financial crisis, many institutional investors have been cautious about making new commitments to the private equity asset class. However, Preqin’s Investor Intelligence database reveals that several institutional investors that decided to stop making new commitments to the asset class in the wake of the crisis have recently shown a renewed interest.

A Virginia-based asset manager stopped investing in private equity several years ago, due to low client demand for the asset class. However it is now noticing an increased demand for such investments and as such, is looking to pursue private equity opportunities. It currently has approximately USD 450 million allocated to private equity funds and is anticipating committing a further USD 50 million across three to four new vehicles this year. The firm has previously participated in around 52 partnership investments.

A Switzerland-based private sector pension fund that invested in private equity up until 2009, has also decided to re-enter the asset class. It is currently invested in a small regionally managed fund that focuses on buyout strategies and providing development capital to small-cap Swiss companies.

Elsewhere on the continent, a Latvian-based institutional investor that had decided to decrease its allocation to private equity back in September 2008 is now looking at making a new commitment to a venture capital fund in the latter half of 2011. It typically invests in Latvia-focused venture funds targeting small and medium-sized enterprises.

Continue browsing industry reports, publications, conferences, blogs and more on Preqin Insights