Intense Competition Between GPs Could Impact Returns: Preqin

Thanks to increasing competition between GPs, it will be more difficult to find attractive investment opportunities and returns will be impacted together with investor appetite, notes a Preqin survey.

After surveying 260 private equity and venture capital fund managers in November 2014 to gain insight into current issues impacting the industry and their outlook for 2015, Preqin published a report titled: “Fund Manager Outlook for 2015”.

Competitive buyout deals landscape

According to the Preqin’s latest survey, a significant proportion of surveyed respondents highlighted fundraising, valuations, performance, exits and ongoing volatility and uncertainty in global markets as some of the biggest challenges facing the private equity and venture capital industry in 2015. As demonstrated in the following graph, the surveyed firms...