The majority of investors, 53%, believe their private equity portfolios are overvalued, and 68% think the same of their venture capital holdings, according to a Preqin survey of 178 institutional investors.
Forty-seven percent of investors surveyed indicated they believe their real estate portfolio performance to decline in the coming year.
Some 81% of investors surveyed said that we are currently on a decline or approaching the bottom of the macro-economic and real estate market cycles. The majority of investors are holding pat on their private market portfolios with 5% planning to sell down their private capital holdings in the next 12 months and another 26% planning to increase their commitments.
Seventy-four percent of investors surveyed indicated that the denominator effect has either had no impact or been a minor consideration for private capital allocation decisions over the past year. About a third, 34%, plan to increase their private equity allocations with 84% of those investors stating they plan to increase their allocations the end of 2023.