Of the 212 people surveyed, 47 per cent of general partners, 36 per cent of limited partners and 33 per cent of consultants said that the private equity market is “more liquid than it used to be and will continue to become more so”.

Despite this, only 22 per cent of general partners, 19 per cent of limited partners, and 17 per cent of consultants believe private equity liquidity levels are sufficient to meet current industry demands.

Secondary market growth was identified as a key stimulant in the easing of liquidity constraints. According to Private Equity International, the secondary market has become mainstream when accounting for the sale of troubled assets at deep discounts, and last year's global transaction volume is expected to exceed $30 billion. 

Indeed, a majority of those surveyed said engaging in the secondary market is “no longer taboo” for investors, although there was concern from more than half of limited partners, who said this market was overvalued.

Another notable contribution to the industry's increasing liquidity is the development of private equity mutual funds and exchange-traded funds for retail investors. While there was a majority view that these products would remain “niche”, 32 per cent of respondents expect them to become more important in the private equity realm.

Although most respondents believed the rise in publicly-traded entities with underlying private equity investments was likely to continue, a significant 82 per cent thought publicly-traded private equity firms were “not a good proxy” for private equity.

“The rapid evolution of private equity vehicles and trading venues only adds to the complexity of the operating environment for asset managers,” said Philip Masterson, senior vice president of SEI’s investment manager services division and head of its international business.

“Increasing liquidity is good news for private equity managers, but they will need to adapt their operating infrastructure to changing market structures. Meanwhile, they are also dealing with escalating compliance, transparency, and reporting demands. Having a robust and flexible operating platform will be critical for managers who want to stay focused on their core mission of fulfilling investor return expectations.”

SEI’s investment manager services division serves investment organisations worldwide, representing some $13 trillion in assets under management. Around a quarter of the global survey respondents were European.