Global LPs most concerned about regulation and deployment in 2018

Half of the global investors surveyed by Augentius expect market conditions to worsen this year compared with 2017.

A majority of private equity and global real estate investors surveyed by fund administrator Augentius are most concerned about asset valuations, the challenges of finding investment opportunities and market regulation this year.

The findings published in Augentius’s annual industry survey for 2018 suggest a “nagging disconnect” between the concerns of some of the global LPs versus their managers in some regions.

Half of the global LPs that were surveyed expressed a more bearish sentiment for the industry this year as compared to 2017. In contrast, a majority of the Asian and American GPs expect 2018 to fare better, or similar, than 2017.

In addition, 25 percent of the global LPs listed communicating with their GPs as a top challenge. However, for the UK and European and Asian managers, this was cited as a low priority.

Even though a small percentage of the global LPs recognise cybersecurity threat as a key challenge, more than 60 percent are looking to increase their spending on technology.

In contrast, there is a significant difference in how the European, American and Asian managers assessed market risks in 2017 and their outlook for this year, including the potential impact of financial policy shifts and cybersecurity threats.