As institutions face increasing pressure to meet their year-end investment targets, emerging managers and funds still actively raising capital are in a prime position to put that capital to work. Intralinks surveyed LPs globally to find out their current and future allocation plans.
With $358 billion* in capital already raised to date, 2017 global private equity fundraising could be on track to match last year’s total fundraising levels*.
More than one-third of LPs surveyed confirmed that their current allocation to alternative investments was more than 30% (see Figure 1). Two-thirds of LPs said that they plan on increasing their allocations by between 1% and 10% by year end.
Source: Intralinks 2017 LP Survey Report
This is good news for emerging managers and funds still actively raising capital. It is one thing for an LP to say that they plan to increase their allocation to alternatives but quite another to actually find the right managers and investment strategies to put that capital to work.
More than 140 LPs responded to the Intralinks survey, 52% of which were based in North America, 31% in Europe and 15% in Asia Pacific. In terms of LP breakdown, nearly one-quarter (22%) were public pension plans, 15% were consultants and 13% were either endowments or family offices.
*Based on Preqin data