In a recent poll, Preqin asked limited partners what key issues they see facing the private equity industry in 2018. An overwhelming majority – 88% – stated valuations as a key concern. These sentiments were reflected in further questions on return expectations. Forty percent of institutional investors surveyed expect their private equity investments to return 4.1% or more over the public markets; this is down from 49% in 2016 and 54% five years earlier. The proportion expecting market returns increased to 9%, while the number of limited partners that believe they will get a return between 2% and 4% over the market also grew.