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03 April 2012

IPE: Institutional investors warming to private equity co-investments


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Limited partners such as pension funds and sovereign wealth funds are looking to increase allocations to private equity by co-investing with fund managers, according to a survey by Preqin.


The survey found that institutional investors were seeking new ways to extract value from their private equity portfolios, and that a growing number was setting aside capital for co-investments in the asset class. According to the survey, more than two-thirds of investors have seen higher returns from co-investments than private equity fund investments, while 13 per cent of respondents said returns were significantly better.

Preqin's survey also showed that institutional investors tended to have a number of conditions that must be met before making co-investments. The survey also highlighted the lack of capital and the lack of human resources as other common stumbling blocks for private equity co-investments.

Full article (IPE subscription required)



© IPE International Publishers Ltd.


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