ROWAYTON, Connecticut, October 7, 2021 (GLOBE NEWSWIRE) – A new survey from Eaton Partners, a leading investment agent and financial advisory firm, and a wholly owned subsidiary of Stifel Financial Corp. (: SF), reveals institutional investors remain constructive in private capital markets amid rising inflation, potentially higher interest rates and heightened surveillance of environmental, social and governance issues ( ESG).
The latest “Eaton Partners LP Pulse Survey” surveyed major Limited Partners (LPs) around the world on their views on alternative investments. The main findings include:
- Most (71%) believe that a slight increase in fund closures is possible or likely before the end of the year, although more than a third (38%) of these respondents admit there could be a delay until 2022.
- About two-thirds (65%) plan to increase allocations to the private market in 2022. Particularly attractive investment strategies include buyouts (44%), venture capital (44%), growth equity ( 42%) and private credit (40%).
- The track record of a fund manager (89%) is considered the most important factor when evaluating a potential new investment, followed by strategy (62%), management team (58% ) and fees (36%).
- Although the pace of performance varies, an overwhelming number of LPs surveyed (82%) expect to be back in the office at some point, and three-quarters (76%) consider any COVID-induced change in the process marketing funds is temporary.
“As the world faces new challenges related to the ongoing pandemic, inflationary pressures, supply chain disruptions and market volatility, LPs remain confident in the ability of private capital markets to weather these storms, ”noted Jeff Eaton, Co-Leader and Global Director. Director at Eaton Partners. “Institutional investors are laser-focused on the financial performance of fund managers as they seek to target and increase their allocations in the private markets. This back to basics approach is indicative of an industry that adapts to ongoing volatility and uncertainty among many external factors. “
The survey also indicates that the threat of inflation and potentially higher interest rates are also factored into strategic planning, as is the in-depth examination of ESG considerations and socially responsible investing (SRI).
- 89% are at least somewhat concerned about rising inflation; 13% consider themselves “very” concerned.
- While the Federal Reserve has indicated that higher interest rates are on the horizon, this does not yet appear to be a major concern for investors, as 74% say the rate hike would have a low to moderate impact. on investment allocations. Only 11% say the impact would be significant.
- ESG factors are an increasingly important catalyst for investors, as around three-quarters (73%) say they are focused or will put more emphasis on climate change, and nearly one-third (32%) ) think that being a socially responsible investor probably improves investment. against 16% who think that such a concentration would hurt returns.
“Current investor sentiment indicates strong confidence in private capital markets as the macroeconomic future remains in motion with the daily adjustments of the post-pandemic hybrid workplace,” said Peter Martenson, Managing Director of Eaton Partners . “Fund managers ready to adapt to the rapidly changing needs of sponsors, such as a focus on ESG factors, while providing exemplary service in an opaque environment, will be the ones who will excel in the markets of tomorrow. “
Click here to view the full survey results.
The online survey of the 46 largest institutional investors was conducted from September 14, 2021 to September 30, 2021.
About Eaton Partners
Eaton Partners, a Stifel company, is one of the world’s leading fund advisory and investment agents, having raised more than $ 114 billion through more than 160 highly differentiated alternative investment funds and offerings. Founded in 1983, Eaton advises and raises institutional capital for investment managers through alternative strategies – private equity, private credit, real estate, real estate and hedge funds / public market – in the primary and secondary markets. Eaton Partners has offices and operates in North America, Europe and Asia.
Eaton Partners is a division of Stifel, Nicolaus & Company, Incorporated, Member SIPC and. Eaton Partners subsidiary Eaton Partners (UK) LLP is authorized and regulated by the Financial Conduct Authority (FCA). Eaton Partners’ subsidiary, Eaton Partners Advisors (HK) Limited, is approved as a Type 1 licensed company by the Securities and Futures Commission (SFC) of Hong Kong. Eaton Partners and the Eaton Partners logo are trademarks of Eaton Partners, LLC, a limited liability company. ® Eaton Partners, 2021. For more information, please visit https://eaton-partners.com/.
Stifel Society Information
Stifel Financial Corp. (: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities and financial services business through several wholly owned subsidiaries. Stifel broker clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its business division Eaton Partners; Keefe, Bruyette & Woods, Inc .; Miller Buckfire & Co., LLC and Stifel Independent Advisors, LLC. The Company’s affiliated brokers provide securities brokerage, investment banking, trading, investment advisory and related financial services to individual investors, professional fund managers, businesses and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and business credit solutions. Stifel Trust Company, NA and Stifel Trust Company Delaware, NA provide trust and related services. To learn more about Stifel, please visit the company’s website at www.stifel.com. For global information, please visit https://www.stifel.com/investor-relations/press-releases.
Neil Shapiro, (212) 271-3447
Jeff Preis, (212) 271-3749