Coller Capital's 39th Global Private Equity Barometer, Winter 2023-24

We are pleased to share our 39th Coller Capital Global Private Equity Barometer

Coller Capital’s Barometer is a unique snapshot of global trends in private equity – a twice-yearly overview of the plans and opinions of Limited Partners worldwide. This edition contains findings on:

Private market M&A activity expectations;
Artificial Intelligence adoption and investment appetite;
Investors’ interest in continuation vehicles, co-investment opportunities, and strategy shifts;
The impact of interest rates on private credit exposures and the future PE financing outlook, as well as private wealth capital growth expectations;
Future target allocation shifts as well as other key themes shaping the private markets industry.

Read the press release

Majority of LPs anticipate growth in M&A activity across private market managers

Almost three fifths of LPs expect to see higher volumes of M&A activity amongst private market managers over the next 3-5 years with European LPs expressing strongest support of the notion.

Integration of AI across processes expected over the next 2-3 years

AI integration across processes is expected to increase over the next 2-3 years as LPs recognise potential growth in AI-driven solutions. European LPs are most likely to integrate AI across the range of processes. LPs are least likely to integrate AI to improve recruitment or investment decision making.

LPs most likely to increase target allocation to private credit

44% of LPs anticipate target allocations to private credit to increase over the next 12 months, the greatest increase of any strategy. In contrast, LPs are most likely to decrease their target allocation to hedge funds and real estate.

The latest edition of the Barometer shows that despite a disruptive macro environment, alternatives remain an attractive asset class but fundamentals in the market are shifting. The opportunities offered by generative AI and the challenges of an evolving regulatory landscape have the potential to change the way both LPs and GPs operate in the future.

Jeremy Coller

Chief Investment Officer and Managing Partner

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Press contact

Montfort Communications

coller@montfort.london +44 20 3770 7906

Barometer

Coller Research Institute

11 December 2023

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Coller Capital’s 39th Global Private Equity Barometer, Winter 2023-24

Majority of LPs anticipate growth in M&A activity across private market managers

Integration of AI across processes expected over the next 2-3 years

LPs most likely to increase target allocation to private credit