Private markets are continuing to generate long-term outperformance for investors. More than 70% of limited partners (LPs) say returns on their private equity portfolios have outpaced their public equity holdings over the past decade, according to Coller Capital’s 2022 Summer Global Private Equity Barometer report.
This has helped boost lifetime returns. The number of investors who have netted annual returns of more than 16% across the lifetime of their private equity holdings is at a near-record high of 42%, the report showed. The only time it has been higher was in 2007, when 45% reported lifetime returns in excess of 16%.
Family offices increase exposure
Private debt still in demand
Even so, a third of North American LPs are anticipating an uptick in defaults as central banks increase interest rates, compared to a quarter of LPs in Asia Pacific. European LPs are most optimistic, with only a fifth expecting higher default rates as a result of rising borrowing costs.