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Investors Committing to UK-Focused Private Equity Funds – August 2013

by Philippe Alteirac

  • 06 Aug 2013
  • PE
Preqin currently tracks 1,184 investors that have previously committed to funds focusing on opportunities in the UK. Geographically, 51% of the LPs that have previously invested in funds focusing on the UK are based in North America, 42% are located within Europe and the remaining 7% are based in economies or regions outside of North America and Europe. Investors located within the UK make up 20% of LPs that have an appetite for the region.
 
In terms of the types of investors interested in the UK, public pension funds account for the highest proportion (19%) of the number of overall investors in UK-focused private equity vehicles. Private sector pension funds make up 17% of these investors, followed by fund of funds managers, which represent 13%. Foundations represent 11% of the LPs known to have previously invested in the UK, while endowments account for 10%.
 
Investors based within the UK also represent a significant source of capital within the private equity industry. Preqin currently tracks 392 LPs that are based within the UK, managing an aggregate $9.2tn in total assets. UK-based investors (excluding fund of funds managers) have an average current allocation to private equity of 9.8% of total assets, with an average target allocation of 8.9%. 
 
When looking at the investment preferences of LPs based in the UK, venture capital funds are the most attractive to investors located in the country, with 53% of such investors having an appetite for this type of fund. This is followed closely by buyout funds, with 52% of UK-based investors having an interest in this fund type. Fund of funds vehicles account for 44% of tracked UK-based investors, allowing investors to hold a diversified portfolio of investments and gain access to various geographical regions, as well as niche markets. 
 
With fundraising remaining challenging, UK-based investors, with capital available to invest, look likely to remain an important source of capital for the private equity asset class.
Preqin currently tracks 1,184 investors that have previously committed to funds focusing on opportunities in the UK. Geographically, 51% of the LPs that have previously invested in funds focusing on the UK are based in North America, 42% are located within Europe and the remaining 7% are based in economies or regions outside of North America and Europe. Investors located within the UK make up 20% of LPs that have an appetite for the region.
 
In terms of the types of investors interested in the UK, public pension funds account for the highest proportion (19%) of the number of overall investors in UK-focused private equity vehicles. Private sector pension funds make up 17% of these investors, followed by fund of funds managers, which represent 13%. Foundations represent 11% of the LPs known to have previously invested in the UK, while endowments account for 10%.
 
Investors based within the UK also represent a significant source of capital within the private equity industry. Preqin currently tracks 392 LPs that are based within the UK, managing an aggregate $9.2tn in total assets. UK-based investors (excluding fund of funds managers) have an average current allocation to private equity of 9.8% of total assets, with an average target allocation of 8.9%. 
 
When looking at the investment preferences of LPs based in the UK, venture capital funds are the most attractive to investors located in the country, with 53% of such investors having an appetite for this type of fund. This is followed closely by buyout funds, with 52% of UK-based investors having an interest in this fund type. Fund of funds vehicles account for 44% of tracked UK-based investors, allowing investors to hold a diversified portfolio of investments and gain access to various geographical regions, as well as niche markets. 
 
With fundraising remaining challenging, UK-based investors, with capital available to invest, look likely to remain an important source of capital for the private equity asset class.

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