Close to half of private equity investors worldwide plan to hold to their current target allocations over the next several years, while one-third of private equity investors indicated they would increase their allocations, according to the results of a new survey by BNY Mellon and PEI Media.
Three percent indicated they will decrease their private equity allocations, with another 18% declining to comment.
North American limited partners were the most enthusiastic about the asset class, with 44% stating they plan to increase target allocations over the next several years and 31% keeping their allocation targets the same. Sixty-six percent of European limited partners plan to keep their allocations the same and only 11% expect to increase their target allocations. An even greater percentage (71%) of Asian limited partners expect to keep their allocations the same, while 14% plan to increase their target allocations.
Forty-five percent of limited partners listed fees as their top priority in negotiating new private equity limited partnership agreements; 21% of limited partner respondents listed alignment issues such as clawbacks and carried interest calculations.
The survey was conducted between December and March with 102 general partners, limited partners and “other industry stakeholders.” About half of the survey respondents, 53, were general partners.