Tuesday, June 11, 2013

Financial crisis curbs private equity investor returns: Survey

LONDON: Two thirds of private equity investors have made net returns of at least 11 per cent over the lifetime of their portfolios, a survey showed on Monday, with returns dropping since the financial crisis.


The Global Private Equity Barometer, produced by Coller Capital, showed just 13 per cent of investors had received net returns of 16 per cent or more by the first half of 2013, compared to 45 per cent of investors in 2007.

Coller Capital, which invests in the private equity secondary market, found that 76 per cent of investors thought European private equity would offer attractive investment opportunities over the next year or two, with most favouring Northern Europe over Southern Europe.

While a quarter of investors planned to increase the amount of money they put into private equity over the next year, 30 per cent of investors said they had reduced the pace of their commitments due to buyout firms being slower at both investing the money and distributing the returns on previous investments.

A separate survey of private equity performance, produced by the British Private Equity and Venture Capital Association, found that UK independent private equity and venture capital funds had an internal rate of return of 11.5 per cent last year, compared with 8.4 per cent made across all pension fund assets and returns of 12.3 per cent on the FTSE All-Share index.

indiatimes.com

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