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Private equity fund managers, or general partners (GPs), are worried about the complete or partial withdrawal of certain investors – namely limited partners (LPs) – from the asset class. This, according to the study, has been aggravated by the fact that such withdrawals are rarely communicated clearly, making it difficult for fund managers to understand which investors constitute viable prospects for future funds.
Private equity fund managers also argue that reticence by pension funds and insurers to invest in the asset class will be due mainly to the implementation of new regulation such as Solvency II for insurers, in addition to the shift from DB to DC. Regulatory changes are perceived as having a strongly negative impact despite dubious relevance, compelling many insurance companies and banks – [which] are also refocusing on core activities and boosting liquidity – to scale back their allocations.
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