Private equity investors appear to be bullish, with 90% of survey respondents to Coller Capital's latest survey expecting many private equity investment opportunities for general partners in the months ahead.
Of the those surveyed, 10% indicated private equity managers should pause or slow investment until the COVID-19 crisis has been resolved.
Seventy-seven percent of limited partners surveyed expected North America to be an attractive region for private equity investment, while 19% expected North America to be very attractive over the next two or three years. The remaining 4% considered North America unattractive. Seventy-five percent of investors considered Europe attractive and 13% indicated that Europe will be very attractive over the same time period. In the Asia-Pacific region 69% expected the area to be attractive and 14% expect it to be very attractive.
The survey found that 70% of investors expect net internal rate of returns of 11% to 15% from their entire private equity portfolio for the next three-to-five years.
Meanwhile, very few limited partners expect to invest in special purpose acquisition companies, public entities created to merge or acquire other existing companies. Eighty-six percent of investors have not invested in SPACs and do not plan to do so in the future, while 10% have invested in SPACs and 4% have not invested in a SPAC but plan to in the future.
Alternative investment research firm Arbor Square Associates researched the plans and opinions of 113 private equity limited partners Sept. 14 through Oct. 16.