mast image

Special Report

Impact investing


E130bn private equity 'bonanza'

Related Categories

European pension funds and insurers will provide the bulk of an extra E130bn of capital that will flow into private equity, a new report says.
“The institutional investors in Europe that we surveyed intend to increase their share of private equity investments from the current average of 1.1% to 3.2% of total assets over a five-year period,” said management consulting firm Mackewicz & Partner.
“This would mean that a good E130bn additional capital (global perspective) would flow into this asset class.”
The European Venture Capital Association said recently the European directive on occupational pensions would provide a boost to the venture capital and private equity industry.
The Mackewicz report added: “The additional capital freed up for private equity investments will come predominantly from European pension funds and insurance companies.”
It saw above-average allocation growth from institutions in the UK, the Netherlands and France. European pension funds currently allocate 1.7% to private equity, it found.
The report compared the US and European systems, saying that in the US around 50% of private equity investments stem from pension funds, compared to 23% in Europe. “From the these investment ratios, it is possible to derive just how high the long-term potential is for both listed and private equity companies to raise capital in Germany and continental Europe.”

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2559

    Asset class: Multi Assets.
    Asset region: -.
    Size: EUR 15m (may be split into two mandates EUR 7.5m).
    Closing date: 2019-09-06.

  • QN-2560

    Asset class: Private Equity.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

  • QN-2561

    Asset class: Infrastructure.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

Begin Your Search Here