The majority of endowment and foundation private equity investors — 56% — say valuations are their top concern, down slightly from 58% in the third quarter of last year, according to the third quarter results of the NEPC Endowment and Foundation Poll.
Some 24% stated that private equity is overvalued and 60% indicated current valuations will impact their future commitments. Investors' second biggest concern, cited by 42% of survey respondents, was fund terms and fees.
Overall, the majority of endowments and foundations — 53% — are maintaining their private equity allocations, while 43% are increasing their allocations and 4% are decreasing their allocations.
Investors are most attracted to growth equity (47%), venture capital (44%) and buyouts (39%). Fifty-six percent of endowment and foundation private equity investors have invested or are considering investing in opportunistic credit, compared to 49% invested in or considering distressed credit and 39% for direct lending.