Every investor class wants to boost their private equity allocation in the hunt for yield. But a crowded fundraising market in 2022 leaves the fastest returning managers with the upper hand, and others wondering how long the party can last.
The pandemic has been kind to private equity. With returns at near record levels and far overshadowing those from fixed income, institutional investors hunting for yield have also realised the relative stability on offer in comparison to more volatile public markets.
Over USD 810bn was placed into private equity funds by investors in 2021 – the highest amount on record, according to data provider Preqin.
Read more: Private Equity Wire