Coller Capital’s PE Barometer in five charts

'The fact that half of all private equity investors think ESG investing will in itself boot their portfolio returns should be a wake up call to anyone who still thinks ESG is a 'nice to have' or a PR tool,' said founder Jeremy Coller.

Coller Capital‘s most recent Global Private Equity Barometer, a snapshot of worldwide trends in private equity, depicts LPs keen to continue allocating to private markets, even as the perceived risk to returns has risen materially over the last 18 months.

Driving that fear: a volatile geopolitical setting, potential changes to regulation and tax law, and currency fluctuations.

This, the 34th edition of the report, captures the views of 111 private equity investors, representing a globally diverse LP population.

“There is an optimism in the LP community in terms of ability to get their portfolio to perform, hence an increase in asset allocation in alternatives, particularly to private markets and particular private equity,” said Francois Aguerre, Coller Capital partner and head of origination, when he spoke to Private Equity International about this year’s report.

“Still, there are a number of issues in the world, both economic and political,” Aguerre said, adding that, rightly or wrongly, fears of inflation are manifesting every day in the media and markets. “Clearly, in the investor community, that fear is present. We cannot point to anything specific that is a factual headwind or problem in the system, but there is fear in the system.”

LPs expect a divergence in performance among their managers, with two in five LPs saying they’ll refuse re-ups with weaker managers at a faster rate over the coming years.

See the charts below for further takeaways from the survey.