The pandemic did little to dampen global investors’ appetite for private equity this year, with total dollar fundraising little changed in the first three quarters of the year compared with the same period last year, PEI data show.
Most of the investors who made last year’s Busiest LPs List re-appear, including the European Investment Fund, which topped the ranking again with at least 41 commitments, two more than in 2019. This included backing Livonia Partners Fund II and Carlyle Group Ireland spin-out Melior Equity Partners’ Melior Equity Partners II fund.
Eight of the 10 busiest LPs were all North America-based, reflecting the high levels of disclosure on fund commitments compared with other global regions. Four of the top 10 are Californian pensions: Los Angeles Fire & Police Pension System, the California Public Employees’ Retirement System, the California State Teachers’ Retirement System and San Francisco Employees’ Retirement System.
The ranking is based on disclosed commitments to 2020-vintage funds.
A majority of LPs surveyed for Private Equity International’s LP Perspectives 2021 Study – 84 percent – expect to maintain or increase their exposure to private equity over the next 12 months. Overall, just under half plan to pump more money into the asset class.
Investors plan to maintain or shift more capital towards buyout, growth capital and distressed strategies over the next 12 months compared with the previous period, the study also found. In contrast, investors are least likely to invest in fund of funds.
When it comes to what could impact private equity performance in the next 12 months, a recession in core markets was top of LPs’ minds, followed by the covid-19 outbreak and extreme market valuations.