The large majority (70-80%) of North American and Asia-Pacific LPs believe their private equity portfolios need modifying to prepare them for the next economic downturn, according to Coller Capital’s Global Private Equity Barometer. European investors are more sanguine, with only 45% believing their portfolios need modification.
- LPs portfolios are not ready for economic downturn
- Investors expect a significant divergence of returns between GPs in the next downturn
- PE/VC associations “should be doing more” to explain and defend private equity
- LPs are planning to replace oil & gas exposure with green energy and technologies
- Private equity investing is not suited to retail investors, Limited Partners say
Despite this difference, nine out of ten LPs acknowledge the significant risks to their medium-term PE returns posed by today’s macro environment and high asset prices. When the cycle does turn, almost all LPs expect to see a significant divergence in performance between GPs and between funds.
Gregor von Deuten, Principal and Andrew Ward, Investment Manager discuss investors’ plans for commitments to private debt funds and the challenges these funds face in the current environment.
Adam Black and Iyobosa Adeghe, discuss how private equity investors are responding to climate change and comment on findings from our latest global Barometer showing geographic differences in approach to climate related investments.
Katrina Liao, Principal investment team, shares findings from our 31st Barometer about the Emerging private equity markets
Louise Boothby and Dolapo Awoyinka, discuss private equity’s performance in an economic downturn, how prepared investors were for a downturn and a potential divergence in performance between GPs
