As Interest in Private Equity Expands, Three Quarters of LPs Are Now Invested in Secondaries

New data shows that 77 percent of allocators have already used secondaries, and 21 percent plan to up their exposure.

Institutional Investor • September 21, 2021

by Alicia McElhaney

According to new data from Coller Capital, the number of investors planning to increase their allocation to the asset class is at an all-time high since the financial crisis.

The data, compiled from a survey conducted in February and March of 111 private equity investors from around the world, shows that these investors have a conflicting view of the market.

On one hand, most respondents said they think it is the best time to be making new private equity commitments. On the other, the majority also says that it’s harder than usual to select general partners.

Enter secondaries funds: investments that allow limited partners to access private equity portfolios secondhand. In a secondary deal, an investor can make a new commitment to a proven investment manager, increasing their private equity allocation along the way, should they choose to.

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