Coller Capital, a private equity firm, released the findings of its Global Private Equity Barometer, a new study of the equity asset class.
Over the next 18 months, two out of every three private equity investors planned to renew financial commitments for the 2010 to 2011 cycle. Despite diminishing returns on investments, the investments are expected to rise.
The study concluded half of all investors in the asset class have made monetary returns of lower than 11 percent from private equity. 20 percent of investors earned less than five percent according to the study.
“There is nothing that suggests investors are not very keen on the industry but for individual firms it opens some tough and challenging discussions ahead,” said Jeremy Coller, Coller’s chief investment officer.
Successful private equity managers have benefited from the economic downturn in contrast to equity firms with too poor of a  performance history and the operational expertise to adjust.
As a result, two of every five North American investors told the Coller they intended to reduce the number of their investments and refocus efforts on the most successful, operationally efficient firms.
