Most Private Equity Managers Expect AuM Globally To Rise Over Next 12 Months

Tom Burroughes Group Editor 19 August 2016

Most Private Equity Managers Expect AuM Globally To Rise Over Next 12 Months

A survey of 187 private equity firms painted a mostly buoyant picture of the industry, at least in terms of assets under management and demand from investors.

A poll of 187 private equity fund managers by research firm Preqin has found that more investors want to put money to work in their portfolios over the next 12 months, with European investors the most enthusiastic. Globally, private equity assets under management are expected to rise.

Around half (47 per cent) of the fund managers surveyed said there was increased appetite from investors in Europe, with many also seeing more interest from investors in North America (45 per cent) and Asia (40 per cent).

Many respondents reported increased appetite from family offices (58 per cent) and public pension funds (41 per cent) compared to 12 months ago. Meanwhile, 38 per cent of the managers said private pension funds and sovereign wealth funds were also showing greater interest in the asset class.

Nearly two-thirds (65 per cent) of surveyed firms are expecting overall private equity industry assets to expand over the next year, with only 4 per cent expecting the total figure to shrink.

Most private equity managers predict deal and exit activity will increase over the next 12 months. Globally, 62 per cent of respondents intend to put more capital work; only 13 per cent expect to put less money in play. Some 44 per cent of managers expect more exits, while 23 per cent expect a decline.

A higher proportion of fund managers based outside of North America and Europe are planning to put more capital to work in the coming year; 43 per cent of firms in these regions intend to deploy significantly more capital, while more than a third (35 per cent) are set to increase their investments slightly.


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