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Within this edition of the Barometer. There are a number of findings relating to distribution acti...
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There has been a step change in the level of exit activity across private equity portfolios. Almost 90% of investors have increased optimism about distribution activity and cash coming back into their portfolios for 2024.
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And the great news is that on the back of this increased optimism over 30% of investors expect to increase their allocations to private equity in the coming 12 months.
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And that’s a hugely positive sign, an indicator for the industry. For more findings from investors, and our latest Barometer.
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This summer’s Barometer report shows that secondaries is a real sweet spot for investors....
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There’s no doubt that investors expect to see growth and expansion within the secondaries asset class. Specifically within secondaries, there are lots of different subsectors and where investors expect the greatest growth is in private equity secondaries, where over 70% of investors expect expansion in this part of the market. Following quickly behind private equity secondaries is both private credit secondaries and infrastructure secondaries, where investors expect further growth in each of these two markets.
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All of these signs really show that the secondaries market is incredibly healthy, incredibly vibrant, and poised for continued growth. These are just a selection of the Barometer findings for this summer. Feel free to delve into them in more detail via our website.
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Private credit has been the asset class of choice for many investors over the last couple of years...
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So it’s no surprise that 45% of the investors asked tell us that they want to increase their allocations to private credit over the next 12 months.
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Let me now double click on which asset classes within private credit investors favour.
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It’s no surprise that 70% find senior direct lending most attractive and this is followed by mezzanine with 58%. Looking into a bit more detail into allocation intentions of investors 38% of LPs tell us that they intend to increase the allocation to senior direct lending over the next 2 to 3 years. If you want more detail on the findings of the barometer report.
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In this liquidity constrained environment, it’s no surprise that NAV financing is a topic of...
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There is growing acceptance of NAV financing in the investor community. Over 40% of investors tell us that they’re comfortable with NAV financing as a tool of liquidity provision.
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Based on similar trends we’ve observed, we expect NAV financing to be used more widely and investors to become more comfortable with this technology. Let me maybe link this to GP led transactions, which very quickly have become adopted in the investor community.
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And by now 92% of investors expect their managers to use GP led funds to create liquidity for them.
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If you want more detail on the findings of the barometer report, please go onto our website.
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The private equity industry is also seeing activity amongst its managers, and that’s no surp...
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We saw that in the aftermath of the GFC. So it’s clear that as the industry matures, there’s going to be losers and winners amongst managers.
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For more findings from investors, and our latest Barometer, please visit our website.