The majority feels the performance of PE investments has met or exceeded expectations, according to a new study of private equity, hedge fund, real estate and infrastructure fund investors by Preqin.
In particular private equity investors who say performance has exceeded expectations has reached a high of 18%, the study found. Eighteen percent may not seem like a large number. But remember the Dow’s year-to-date gain is about 14%. And a year ago, the sentiment that PE was exceeding expectations was at 9%.
In comparison, hedge fund and real estate investors look like a more chasten lot. Roughly a quarter of these LPs view the asset classes as falling short of expectations.
The greater satisfaction with PE could translate into more welcoming meetings with LPs. Forty-five percent of private equity LPs say they are below their target allocations for the asset class. Forty-one percent of hedge fund investors say they are.
Preqin said it interviewed 450 investors from June to August to gather the data for its study. “Over 80% of investors interviewed in each asset class expect to commit the same or more capital to their respective asset class in the next 12 months,” the study found.
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