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PRINT THIS PAGE UK institutional investors plan to allocate more money to private equity26/09/2005. Source: AltAssets. 
 Many UK institutional investors expect to increase the proportion of total assets under management being allocated to private equity, according to a survey conducted by the Centre for Management Buyout Research and sponsored by European private equity fund of funds manager Adveq.
Over the next two to five years 24 per cent of all respondents plan to invest between two and five per cent of total assets under management in private equity, compared to only seven per cent currently investing that percentage into the asset class. There will also be a rise of the number of investors in the five to ten per cent range, the survey predicts. In the future, however, the actual number of UK institutions investing in private equity will slightly fall from 41 per cent to 38 per cent.
André Jaeggi, managing director at Adveq, said, 'Investors in the UK have long recognised the role that private equity can play in an investment portfolio and this is reflected in the high proportion of UK institutions investing in the asset class, both now and in the future.
'Furthermore, the appetite amongst UK investors to increase their average allocation to the sector is a clear endorsement of the long-term benefits of the asset class and we believe that, despite the increasing availability of other alternative assets, private equity will remain a key asset class for UK investors,' Jaeggi continued.
The majority of institutions stated that the most important reasons for investing in private equity are to generate greater returns and achieve better diversification. UK investors seek, on average, a 12.8 per cent return on private equity investments.
The survey is based on responses from 239 institutions, including pension funds and insurance companies.
Copyright © 2005 AltAssets
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