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LP appetite for secondaries on rise

Investors’ desire for secondaries fund exposure continues to grow, according to the latest Probitas investor survey.

Nearly one-quarter (24 percent) of investors surveyed recently by placement firm Probitas Partners plan to ‘focus attention’ on investing in secondaries funds in 2015. That’s up from 22 percent from last year.

The survey received 90 responses from a global mix of public and corporate pension plans, fund of funds, family offices, endowments, foundations, consultants and advisors.

Asked to choose no more than five strategies they plan to focus on next year from a list of 26, the 90 global respondents’ answers ranked secondaries funds 14th, just behind restructuring funds, pan-Asian funds, credit strategies and US venture capital strategies.

Most investors – 71 percent – planned to focus their attention on US mid-market buyouts, characterised as doing $500 million to $2.5 billion deals. The next most popular strategies were country-specific European buyouts (58 percent); US small-cap buyouts (46 percent); growth capital funds (40 percent); pan-European buyouts (39 percent); distressed debt funds (35 percent); and large US buyout funds (34 percent).

Less front and centre for investors were infrastructure funds (19 percent), mezzanine funds (10 percent), fund of funds (7 percent) and mining funds (5 percent).

For the full survey, click here.