11 June 2024 Barometer
Research & Insights

Coller Capital’s 40th Global Private Capital Barometer, Summer 2024

Coller Capital’s 40th Global Private Capital Barometer, Summer 2024
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Coller Capital’s 40th Global Private Capital Barometer, Summer 2024
A fifth of LPs eye semi-liquid funds

Although more than 20% of LPs have already invested in a semi-liquid fund, or are considering doing so, the vast majority show no interest at present. While semi-liquid products are tailored to the needs of private wealth investors, the benefits are also relevant for some institutional investors, which could lead to more widespread adoption over time.

Diversification, reduced operational complexity, along with immediate capital deployment are some of the potential advantages these funds can offer, thus making semi-liquids potentially valuable components of a well-balanced investment strategy.

Cautious scrutiny amongst LPs regarding GPs’ utilisation of semi-liquid funds

Whilst semi-liquid investments are beginning to be embraced by LPs, many have displayed concern for the impact they will have on GP’s operating models. Almost six out of ten respondents voiced reservations about changing investment focus and/or managing to retail investor requirements.

This view was more prevalent with North American LPs (76%) in contrast to their European (44%) and APAC (45%) counterparts. The rest of the respondents saw no concerns or were confident that GPs would be able to manage such structures without adapting their models significantly.

Private capital’s expansion into retail set to amplify awareness among general population

LPs are confident that the expanding presence of private capital in retail will lead to broader understanding of the asset class. This shift will help democratise access to private capital and could also highlight its advantages as well as potential risks to a wider audience.

Structural change
Allocations and distributions