Less than a quarter of private equity (PE) investors in Europe expect an improvement in exit opportunities in the coming year, according to research.
Less than a quarter of private equity (PE) investors in Europe expect an improvement in exit opportunities in the coming year, according to research.
The majority of investors in PE funds, or limited partners (LPs), expect to see no change, while slightly more than a quarter anticipate a deterioration in prospects, suggests the survey of 120 LPs from investment firm Coller Capital.
A large majority (82 per cent) of European LPs have declined to reinvest with one or more of their existing fund managers (general partners, or GPs) over the last 12 months.
Jeremy Coller, CIO of Coller Capital, comments, ‘Scarce capital, slower returns and political uncertainty are the immediate future for our industry.
‘LPs will need to be both patient and realistic. GPs will need to adapt quickly to investors’ changing requirements.’
The balance of power between LPs and GPs appears to be shifting. More than four-fifths of LPs believe the terms and conditions of European buy-out funds will become more favourable to them over the next two years, while roughly two-thirds believe this will also be the case for venture capital funds.
