About the 2022 Survey
The results of mcp’s 10th Annual Investor Survey – The Role of Private Equity in Volatile Times: How Leading Investors Respond to the New Market Environment— show that investor allocations to private equity have surged in 2022, primarily due to the strong performance of the asset class and a robust fundraising environment.
The report captures the views of private equity investors around the world – providing insights into their investment strategy and preferences in the current market environment where public market valuations have sharply decreased, inflation has risen dramatically and Russia declared war on Ukraine.
Key Survey Findings
PRIVATE EQUITY ALLOCATIONS HAVE SURGED
For 71% of family offices and foundations and one-third of institutional investors, private equity represents more than 15% of the portfolio
This is primarily a result of the strong performance of the asset class and a robust fundraising environment
INVESTORS TURN TO RESILIENT INDUSTRIES
Economic recession is investors’ top concern
To navigate this, investors turn to resilient industries, like healthcare and business services, and to investment strategies expected to be less impacted in a downturn, such as mid-market buyouts and secondaries
STRONG APPETITE FOR SECONDARIES
Secondaries are the #2 long-term strategic preference of investors, after mid-market buyouts and ahead of other well-established strategies
Preference is for complex secondaries and fund portfolio acquisitions
DESPITE VOLATILITY, OPTIMISM REMAINS
One-third of respondents will increase their allocation to private equity over the next 12 months
More than 60% expect positive stock market performance over the next 24 months
Concerns over long-term inflation have not increased since last year
*All information based on the MCP Annual Investor Survey released in November 2022.