Prepared in collaboration with mergermarket, the Alternative Investments Outlook 2013 report synthesises interviews with 100 LPs operating across North America and Western Europe.
The report also provides a detailed description of the following key findings:
Confidence and optimism about the current PE environment:
• Nearly half of LPs say that their PE investments have surpassed their expectations.
• Of those LPs who plan to adjust their allocation to PE within the next year, the overwhelming majority (95%) expect to increase the amount apportioned to the asset class.
Enthusiasm about the alternative investments climate in Europe:
• Northern Europe is most frequently mentioned by LPs as fitting with their investment strategies.
• More than half of LPs see Southern Europe – including Portugal, Spain and Italy – as offering attractive opportunities.
Increased interest in secondary PE commitments:
• Three-quarters of LPs expect to acquire more secondary commitments.
• LPs are increasingly looking to side-step general partners (GPs) to provide direct lending to companies.
Evolution of GP and LP interactions:
• Nearly all LPs (98%) are communicating more frequently with their GPs.
• 63% of LPs cite timeliness of reporting as the most common problem with valuation information.
• Three out of four LPs asked GPs for greater transparency in the last 24 months.
• When choosing a fund manager, 70% of LPs said that transparency was the most important factor (ahead of strategy and performance).
The full report can be viewed here