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Despite the downturn, 83 percent of PE investors are planning new allocations: Moonfare 2022 Investor Survey
Retail investors in PE are aware that economic challenges lay in the near future. However, they remain bullish on the asset class and are even considering increasing their allocations.
Written by Blazej Kupec
November 28, 2022
Retail investors in private equity are aware that economic challenges lay in the near future. However, they remain bullish on the asset class and even consider increasing their allocations.
This is one of the key findings of the annual Moonfare Investor Survey, conducted in September 2022. With the survey, we wanted to better understand how the investors feel about the state of private equity, given the current economic volatility and overall uncertainty. We are grateful to the 244 members of our community who offered us their views and observations.
Key highlights include:
- Many investors have dwindling confidence in the economic outlook: 73 percent of survey respondents say they feel “somewhat bad” about the current state of the economy.
- Investors are doubling down on private equity, despite the macro headwinds: 83 percent are considering making new allocations to the asset class in the next 12 months.
- Buyout funds are seen as the best bets, while defensive strategies gain traction: 56 percent of respondents expect buyouts to generate the best returns in the short term.
- The door to private equity is open, but barriers still exist: When asked about what prevents them from making higher allocations to private equity, 48 percent ranked illiquidity as one of the biggest hurdles, followed by fees (41 percent).
Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. Private equity is a high-risk investment and you are unlikely to be protected if something goes wrong. Subject to eligibility. Please see https://www.moonfare.com/disclaimers.
Authors
Senior Content Manager
Blazej Kupec
Blazej is a senior content manager at Moonfare. With ten years of experience in financial media, he now covers trends and developments in private equity. Blazej especially enjoys creating content that helps people better understand the intricacies of the asset class. He holds a BSc in Political Science from the University of Ljubljana.
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Moonfare aims to lead a new era of private equity investing by creating the opportunity for higher returns for more people. We are building the world's most engaged investor community to inspire investments that drive the world forward.
Important information
Moonfare does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. Alternative investments in private placements, and private equity investments via feeder funds in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Prospective investors should carefully consider the risk warnings and disclosures for the respective fund or investment vehicle set out therein. The value of an investment may go down as well as up and investors may not get back their money originally invested. Past performance is not necessarily a guide to future performance. An investment in a fund or investment vehicle is not the same as a deposit with a banking institution. Please refer to the respective fund documentation for details about potential risks, charges and expenses. Additionally, investors will typically receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. In the most sensible investment strategy for private equity investing, private equity should only be part of your overall investment portfolio. Further, the private equity portion of your portfolio may include a balanced portfolio of different private equity funds. Investments in private equity are highly illiquid and those investors who cannot hold an investment for the long term (at least 10 years) should not invest.
In the United States, securities products and services are offered through Moonfare Securities USA, LLC (“Moonfare Securities”). Moonfare Securities is a registered broker-dealer (brokercheck.finra.org) with the United States Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority, Inc. (www.finra.org) and the Securities Investor Protection Corporation (www.sipc.org).
- 1 Minimum investment may vary by country and local regulation.
- 2 Source: McKinsey "Private Markets Annual Review 2022"
- 3 Past performance is no guarantee of future returns.