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Classified in: Science and technology, Business
Subject: SVY

PitchBook Survey Found Limited Partners Remain Bullish on Private Market Strategies


SEATTLE, Dec. 13, 2018 /PRNewswire/ -- Private market strategies are expected to represent more than one-third of limited partner (LP) total portfolio allocation over the next 24 months, despite lowered return expectations for most fund strategies, according to a new survey conducted by PitchBook. Surveys gathered from more than 50 global LPs found the majority of respondents expect to increase average allocations to the asset class by 1.6% and have been satisfied with returns in recent years. At the same time, more than 30% of respondents claim to have lowered return expectations for buyout, growth, VC and real assets funds. Valuations and deal pricing were cited as the biggest strains on performance, followed by political uncertainty. PitchBook's survey went on to find mostly healthy relationships between LPs and GPs, yet management fees continued to be the biggest area of misalignment.

(PRNewsfoto/PitchBook)

"Private markets make up the single biggest slice of LP asset allocations and are also the area expected to increase the most over the next two years," said James Gelfer, senior strategist at PitchBook. "This aggressive push is driven by a broader sea change of institutional investors reassessing how they build portfolios and compensate external managers, with a broad shift to passive public market investments while seeking alpha-generating strategies in private markets. As return expectations are falling for some private market strategies, we expect investors to continue exploring new areas of the market including private debt and secondaries funds."  

The PitchBook LP Survey collected responses from more than 50 global LPs during 4Q 2018. In this survey, limited partners were defined as endowments/foundations, family offices, fund-of-funds, high-net-worth individuals and private pensions. Respondents AUMs ranged from less than $250 million to over $25 billion

To download the full report and survey, click here.

Allocations & Access Points

LP-GP Relationships

Returns & Performance

Download the full report here.

About PitchBook
PitchBook is a financial data and software company that provides transparency into the capital markets to help professionals discover and execute opportunities with confidence and efficiency. PitchBook collects and analyzes detailed data on the entire venture capital, private equity and M&A landscape?including public and private companies, investors, funds, investments, exits and people. The company's data and analysis are available through the PitchBook Platform, industry news and in-depth reports. Founded in 2007, PitchBook has offices in Seattle, San Francisco, New York and London and serves more than 20,000 professionals around the world. In 2016, Morningstar acquired PitchBook, which now operates as an independent subsidiary.

 

SOURCE PitchBook


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