The appetite for private equity remains as strong as ever, with 35 per cent of institutional investors and an impressive 88 per cent of family offices and foundations reporting an allocation of more than 10 per cent of their portfolio to the asset class, according to Montana Capital Partners’ ninth MCP Annual Investor Survey – “Finding outperformance in private equity — how leading investors actively manage their portfolios”.
For both investor types, allocations have been gradually increasing over the past years, arguably as a key measure to increase portfolio returns and as a result of the relative outperformance of the asset class.
Secondaries remain one of the top-three long-term strategic preferences of investors — together with mid-market buyouts and growth capital. Nearly 60 per cent of institutional investors now dedicate more than 5 per cent of their private equity allocation to the strategy. Family offices and foundations have also increased their allocation, with 39 per cent of them now allocating over 15 per cent of their private equity portfolio to secondaries.
