A survey of 150 private equity (PE) managers has found that over half (59%) are reporting increased investor interest in the last 12 months, with 13% seeing a significant interest.
However, the survey, which was conducted for alternative asset data provider Preqin, found that investor interest in Europe lagged behind Asia and North America. The highest level of interest was among family offices, with the lowest level of interest at banks.
Another finding is that PE managers are seeing more competition for investor capital, with 80% saying that this is greater than 12 months ago. And 32% of fund managers expect fundraising to be a key challenge for the PE industry in the year ahead. Preqin head of private equity products, Christopher Elvin, commented: “Fund managers report that interest in private equity is continuing to rise, and almost all investor types are seeing a net increase in appetite for the asset class. But at the same time, the number of funds coming to the market is growing to record highs. The ease with which some of the largest and most successful firms are able to raise new vehicles does not seem to hold true across the market, and small or emerging fund managers may still find fundraising to be a long and difficult process.”