A number of investors have recently reported plans to widen the geographic scope of their private equity portfolios in order ensure diversification in this difficult and uncertain investment environment.
One Netherlands-based foundation, which has traditionally made commitments to predominantly Europe and US focused funds, will enter 2010 with the aim of committing to vehicles targeting opportunities in a number of different regions. The foundation has not made new commitments to private equity during 2009 but expects to resume activity next year and believes it is necessary to diversify geographically in order to achieve superior returns.
A university endowment, based on the west coast of the US, is also seeking investments further afield so as to access a greater number of private equity opportunities. The endowment plan, which has tended to focus on US vehicles in the past, will seek to add exposure to Europe and the Rest of World to its portfolio over the next 12 months, as it seeks to move towards its private equity target allocation of 10% of its assets under management. Similarly, a Norwegian institutional investor is planning to increase its exposure to North American focused buyout funds during 2010 as it feels that it is currently under-allocated to the market. The Oslo-based organisation anticipates making two to three new commitments to private equity vehicles during the next year, despite being slightly over-allocated to the asset class at present.
More information on institutional investors in private equity, and the key contacts at each institution, can be found on Preqin's Investor Intelligence database.