At a difficult time to extract profitability from financial assets, it is precisely the high returns offered by alternative assets that are the hook to attract large institutional investors. Investors surveyed by Yielco state that their expectations of returns on their investments in venture capital are 12.75%, 7.25% for infrastructure and 6.4% in private debt.
But not only this. 61% of those who bet on private equity declare that this asset exceeded their expectations in terms of performance, while only 6% were disappointed. As for infrastructure investors, 73% said they had met their expectations, while no one declared themselves disappointed. 67% of those in private debt were satisfied.
Looking ahead, none of the large investors surveyed expects a negative development of their investments in alternative assets. 80% of investors in private equity have a positive outlook on their investment, for 56% of infrastructure assets and 57% in private debt. That is, investors hope that the scourge of the coronavirus on company accounts will cause multiple opportunities to emerge in the market.
As for the secondary market, the one in which positions in private equity funds are traded, almost half of Spanish investors have not yet resorted to it. 19% have used it to sell positions and 30% to buy others.
Thus, 70% of private equity investors plan to increase their exposure to this asset in the future, compared to 77% of those who say they will bet on infrastructure and 65% on private debt. Geographically, investors choose to increase their exposure to the US, first of all, at the expense of their investments in European funds.
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