Preqin’s Investor Intelligence database shows that 670 institutional investors that are currently investing in private equity either include distressed private equity funds as part of their investment strategies or have invested in these vehicles in the past. Preqin's February research report; a survey of institutional investors’ attitudes towards investing in private equity funds – showed that 35% of the 106 respondents viewed distressed private equity as presenting the best opportunities at that time, and 30% said they would be seeking to invest in distressed private equity vehicles over 2010 and 2011, making it the second most attractive fund type after small and mid-market buyout funds.
Of the 670 distressed private equity investors, 63% are located in North America, 28% are based in Europe and the remaining 9% in Asia and Rest of World. Approximately 4% of all North American investors are from Canada while 15% headquartered in New York City, making it the most populous city in terms of number of distressed investors. A further 11% of North American-based distressed investors are based in the state of California and 6% in the state of Texas.
In Europe, the UK is home to most of the institutional investors interested in distressed private equity vehicles, with 23% of European-based investors based in the country. Switzerland is the second most populated European country and is home to 18% of all European-based distressed private equity investors, followed by Germany which accounts for 14%. Approximately 27% Asia and Rest of World-based distressed private equity investors are from Australia, 20% are from Japan and 12% are located in Hong Kong.
More information on distressed private equity investors can be obtained through Investor Intelligence.