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Alternative investing by tax exempt organisations 2001

European institutional investors plan to increase their allocation to private equity over the next few years, according to the latest edition of the Goldman Sachs/Frank Russell report on alternative investment. The survey found that European investors expected their strategic allocation to reach 4.3 per cent by 2003 up from the present level of around 3.6 per cent. Total assets committed to private equity by the survey's respondents increased to $246bn in 2001 from $169bn in 1999.

North American institutions account for by far the biggest share. Their commitments rose to $220bn from $152bn in 1999. There was a big increase in the UK and continental Europe to $23bn from $14bn but there were more institutions surveyed this time around. In fact, the UK was singled out as experiencing a significant increase in interest in private equity. Some of this rise is almost certainly attributable to the effect of the Myners report on institutional investment, published in the spring under the auspices of the UK Treasury. The most popular sector in all regions except Japan were buy-out funds, which attracted as much as 50 per cent of all commitments in the US.
 
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© Goldman Sachs and Frank Russell 2002

Goldman Sachs is a leading global investment banking and securities firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

Frank Russell Company, a global investment services firm, provides manager-of-manager investment products and services in more than 35 countries. Russell manages $66 billion in assets and advises clients representing more than US$1 trillion worldwide.  Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Amsterdam, Johannesburg, Singapore, Sydney, Auckland and Tokyo. For more information, go to www.russell.com.  Frank Russell Company Limited is regulated by FSA.