The vast majority of family offices -- private companies that manage investments and trusts for a single wealthy family -- is happy with their private equity investments and want more. According to a new report from alternate investment research firm Preqin, 84% of family offices are satisfied with investments in private equity, and 69% are "willing to consider forming relationships with new firms, as of year-end 2009." The opportunity for new inflows, of course, comes with some baggage, as 27% of offices require tighter, more personal relationships with the fund managers with whom they invest.

Continue reading Family Offices Want More Private Equity

Family Offices Want More Private Equity originally appeared on BloggingStocks on Wed, 24 Mar 2010 10:40:00 EST. Please see our terms for use of feeds.

The amount of money sitting in sovereign wealth funds grew in 2009. As financial markets around the world recovered from the severity of the financial crisis that struck in September 2008, the coffers of these unique financial entities swelled to $3.51 trillion, according to the latest research from the alternative investment analysts at Preqin.

Nonetheless, some funds did experience withdrawals by their respective governments. In some cases, governments used sovereign wealth fund assets to close budgetary gaps.

Continue reading Sovereign Wealth Fund Assets Up 9% in 2009

Sovereign Wealth Fund Assets Up 9% in 2009 originally appeared on BloggingStocks on Sat, 13 Mar 2010 14:10:00 EST. Please see our terms for use of feeds.

Continue reading No Bargains in Private Equity, Unlike 2001

No Bargains in Private Equity, Unlike 2001 originally appeared on BloggingStocks on Mon, 01 Mar 2010 15:10:00 EST. Please see our terms for use of feeds.

Continue reading Opportunistic Real Estate Buying By Private Equity Poised to Pop in 2010

Opportunistic Real Estate Buying By Private Equity Poised to Pop in 2010 originally appeared on BloggingStocks on Mon, 22 Feb 2010 10:40:00 EST. Please see our terms for use of feeds.

They may say they can't stand the "ugly Americans," but there's only one place where rich Europeans will put their money.

According to alternative investment research firm Preqin, 29% of all European hedge fund investors prefer to invest in funds based in the U.S., where the managers are often able to highlight solid track records and experience, not to mention more innovative funds. The average European hedge fund investor has capital in three U.S. funds.

Continue reading A Third of Europeans Want Americans to Manage Their Money

A Third of Europeans Want Americans to Manage Their Money originally appeared on BloggingStocks on Tue, 16 Feb 2010 13:00:00 EST. Please see our terms for use of feeds.

The corner of the private equity sector focused on distressed investment opportunities has a considerable amount of cash on the sidelines. Distressed debt funds lead the private equity industry in terms of dry powder, followed by special situation and turnaround funds, according to alternative investment research firm Preqin.

Though global dry powder has fallen from its worldwide high of $59.9 billion in December 2007, its January 2010 level of $42.5 billion is still far above the $18.7 billion reached in December 2004. This does represent a decline of 29% from the 2007 peak, but the dry powder levels remain robust.

Continue reading Private Equity Dry Powder Off by a Third, Distressed Debt Leads

Private Equity Dry Powder Off by a Third, Distressed Debt Leads originally appeared on BloggingStocks on Mon, 15 Feb 2010 13:30:00 EST. Please see our terms for use of feeds.

Continue reading Mega-Buyout Funds Poised for Growth

Mega-Buyout Funds Poised for Growth originally appeared on BloggingStocks on Fri, 15 Jan 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Buyout Capacity for Private Equity Biz Still Growing

Buyout Capacity for Private Equity Biz Still Growing originally appeared on BloggingStocks on Thu, 31 Dec 2009 13:40:00 EST. Please see our terms for use of feeds.

The private equity market was hit hard by the financial crisis last year, but it's already on the road to recovery, according to a new report by Preqin (pdf).

From the first quarter to the second, this year, increasing returns and valuations have given investors a reason to hope, even though the industry's average return is down 24.1% for the 12-month period ending June 30, 2009. The negative return still outpaced the S&P 500, MSCI Europe and MSCI Emerging Markets indexes, the alternative investment research firm says, which returned -26.2%, -34.1% and -27.8%, respectively -- and the 12-month average improved from -30% for the year-long period ending March 31, 2009.

Continue reading Private equity returns off 24% but still ahead of the broader market

Private equity returns off 24% but still ahead of the broader market originally appeared on BloggingStocks on Sat, 12 Dec 2009 13:20:00 EST. Please see our terms for use of feeds.

For more than a third of private equity employees, employee compensation either stayed the same or declined. A recent report by alternative investment research firm Preqin estimates that 38% of private equity employees saw base salary freezes in 2009, and 6% of firms participating in the survey indicated that they were cutting salaries this year. Of course, this means that 56% kicked base salaries up this year, though the average increase was a mere 2%.

For the employees of 22% of the firms participating in the Preqin survey, the brush with a pay cut was close as these companies considered a freeze. But 40% haven't cut or never considered it.

Continue reading Salaries frozen, down at private equity firms this year

Salaries frozen, down at private equity firms this year originally appeared on BloggingStocks on Wed, 02 Dec 2009 12:00:00 EST. Please see our terms for use of feeds.

The amount of investable assets available to venture capital funds has basically been a growth story since 2003. Dry powder slipped 7% in 2004 and 10% in 2008, but increased in every other year over this period.

Now, the dry powder number sits at $155 billion, according to alternative investment research firm Preqin, just off its December 2007 peak of $160 billion. The big number, however, masks a wide range of market situations for venture capital funds. Dry powder levels vary by strategy and region. To get a sense of what's going on behind the scenes, check out the five facts below about venture capital dry powder.

Continue reading Five views of venture capital dry powder

Five views of venture capital dry powder originally appeared on BloggingStocks on Sun, 18 Oct 2009 13:40:00 EST. Please see our terms for use of feeds.

Family offices are quite active in the hedge fund space, according to Preqin, with the average family office in North America allocating 14% of its assets to this class.

Continue reading Six facts about hedge funds and family offices in North America

Six facts about hedge funds and family offices in North America originally appeared on BloggingStocks on Fri, 16 Oct 2009 13:40:00 EST. Please see our terms for use of feeds.

It's not exactly a shock, but tangible confirmation is always nice. Alternative investment research firm Preqin found in a recent survey that institutional investors are happier with their hedge fund returns now than they were a year ago. But, the gaps between happy and sad aren't as wide as you might expect.

A September 2009 survey of institutional investors revealed that 62% say "hedge fund returns have met expectations," compared to 53% in October 2008, when the market was consumed by all kinds of calamity. Only 11% responded this year that "hedge funds have exceeded expectations," which is up slightly from last year's 9%. Remember, though the market hit its worst late last year, the problem was building momentum for a while. Participants who do not feel that hedge funds have hit the mark shrank from 38% last year to 27% this year. And 66% are confident or very confident that their hedge fund investments will reach their objectives.

Continue reading Hedge fund investors happier now than a year ago

Hedge fund investors happier now than a year ago originally appeared on BloggingStocks on Fri, 16 Oct 2009 12:40:00 EST. Please see our terms for use of feeds.

Private equity investors are using current financial market constraints on liquidity to negotiate favorable deals, as private equity general partners have watched the values of their portfolios fall profoundly. Efforts to attract additional investment haven't been easy, as potential limited partners are reluctant to make long commitments in an uncertain marketplace. This has given limited partners a stronger position from which to negotiate both fees and terms and conditions.

Limited partners are getting a leg up on the private equity funds in which they invest, signaling a change from the historical trend in which funds could push for aggressive compensation based on the returns they provide. In a poll conducted by Preqin, 43% of investors noted a power shift from fund to limited partner, with only 2% seeing a shift toward the general partner.

Continue reading Limited partners putting pressure on private equity funds to cut fees

Limited partners putting pressure on private equity funds to cut fees originally appeared on BloggingStocks on Thu, 02 Jul 2009 17:15:00 EST. Please see our terms for use of feeds.