Private equity set for investment funds surge
More than a third (38 per cent) of global institutional investors in private equity plan to increase their allocation to the asset class over the next 12 months, according to Coller Capital’s latest Global Private Equity Barometer.
The survey also found that 80 per cent of existing investors expect a significant influx of new investors to the asset class over the next 12 months.
In tandem with this influx, 77 per cent of existing investors see the market for private equity investment skills becoming significantly more competitive over the next three years.
In fact, half of existing investors expect institutions to increase their recruitment from private equity firms as the ‘talent war’ intensifies.
Another key survey finding was that three-quarters of existing investors are worried that private equity fund managers will stray into strategies or geographies where they lack expertise.
North American investors see the danger as particularly acute, with 84 per cent of them perceiving fund manager ‘strategy drift’ as a risk to their returns.
Recommended for you
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
Global investment manager First Sentier Investors has launched an umbrella brand to provide greater clarity around its shift to a multi-affiliate asset manager encompassing six investment teams.
Janus Henderson has seen intermediary outflows in the second quarter of US$1.2 billion, although its deal with insurer Guardian means overall net flows are US$46.7 billion.
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
