Private equity returns have dropped since last year, with only 22% of limited partners now having overall lifetime net returns of at least 16%, down from 37% of LPs last year, according to Coller Capital's Summer 2010 Global Private Equity Barometer.
Meanwhile, limited partners that earned lifetime portfolio returns of 10% or less rose to 51% from 29% in the survey one year ago.
“The comparison is not shocking. At the time the question was asked, it was a time of great constraints on capital availability,” said Jonathan Gutstein, partner in the New York office of Coller Capital.
IE Consulting, a division of Initiative Europe (Incisive Media), conducted the 2010 survey in March and April.
Some 64% of investors expect to either significantly or slightly increase the pace of new commitments to private equity funds in the next two years.
At the same time, 38% of North American private equity investors intend to reduce the number of general partnership relationships over the next two years. By comparison, 22% of European and 19% of Asian-Pacific investors expect to trim their rosters.