Some 53% of private equity general partners expect fundraising in 2016 to be at least modestly higher than last year, while 45% of limited partners anticipate fundraising will be higher than 2015, said a survey by Palico, an online private equity marketplace.
Thirty-seven percent of limited partners expect a modest increase in fundraising, while 8% expect a significant increase. General partners were split with 27% expecting a modest increase and 26% anticipating a significant increase. Another 36% of limited partners and 25% of general partners expect no difference. The remainder of the executives polled anticipate lower fundraising.
Fifty-two percent of limited partners and 54% of general partners indicated they do not expect Britain's exit from the European Union will have a negative impact on European private equity investing.
Meanwhile, limited partners and general partner executives disagreed on whether limited partner investment alliances would improve returns. Fifty-seven percent of limited partners and 37% of general partners indicated that average private equity returns would improve through additional limited partner investing alliances and mergers. Whereas, the majority of general partners, 63%, and a minority of limited partners, 37%, stated that asset owners joining forces to invest in private equity would not improve returns.
Palico surveyed executives at 106 limited partner groups and 179 general partner firms between April 25 and May 27.
