LPs Report The Best Places To Invest

Coller Capital has released the latest edition of its Global Private Equity Barometer, a bi-annual survey of more than 100 limited partners. Nothing too shocking in the results, which included reduced portfolio returns, an anticipated slowdown in GP capital calls and a majority view that sovereign wealth funds either are, or will become, significant competitors for private equity dealflow (that last one might be more notable for the 42% who inexplicably disagree).

Coller also asked LPs to rank the best areas for GP investment over the next 12 months, and the results were a bit surprising. Not so much that European buyouts overtook Asia-Pacific buyouts for the top spot, but rather for North American venture placing show. This is an industry that many LPs have left for dead, unless they can access the sliver of top-tier GPs. Hell, even a lot of venture capitalists argue that the model is largely dead for those playing outside of the rarified decile.

Coller unfortunately gives numbers rather than arguments, so we’re not given any thought behind the ranking. Maybe it means that some of the negative talk is posturing. Or perhaps it’s an opposite reaction to North American buyouts falling out of favor (ranked #5, between Asia-Pacific venture and last-place European venture). Again, just hypotheses.
Coller won’t let us post the actual document, but you can request it from them here.