Only 41% of private equity investors polled in a survey by Prequin made new commitments in the first half of this year, but 54% said they expect to make new commitments in the second half.
Only 41% of private equity investors polled in a survey by Prequin made new commitments in the first half of this year, but 54% said they expect to make new commitments in the second half.
Preqin is a research and consultancy firm focusing on alternative asset classes.
Over the past 12 months investors in private equity have been hit by falling returns, the denominator effect, and uncertainty regarding the direction of the global economy. Fundraising has fallen dramatically from the levels experienced in recent years, and there has been some speculation regarding investors' appetite for the private equity asset class going forward.
Private equity data aggregator Preqin's survey conducted in July has revealed that two thirds of investors are still either at or exceeding their targeted level of exposure to the asset class. Despite the slow pace of commitments made by investors so far in 2009, only 9% intend to decrease their allocations to private equity in the next 12 months.
'Investors have displayed an increasing degree of caution when approaching new commitments to private equity funds in recent months,' said Helen Kenyon, Preqin's manager of investor data.
'The decline in the rate of distributions from portfolio funds has also meant that, though the majority of investors are intending to maintain the level of their exposure to the asset class, they are not at present under the same pressure to make new commitments to achieve this.'
