More than half (55%) of private equity fund managers around the world plan to invest more in 2015 compared to last year, which was the strongest year of private equity investments since the global financial meltdown.
This is according to a new Preqin report, which polled 260 firms worldwide in November last year.
Another 35% of managers said this year they plan to invest a similar amount as last year.
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The report also revealed 26% of respondents were currently in the market with a new fundraise. A further 37% of managers intended to launch a new vehicle in 2015, and another 12% were planning a new fund for 2016. More than 2,200 funds are currently being marketed by private equity fund managers.
Additionally, 57% of private equity firms said they had seen an increase in investor appetite for private equity over the past year, with only 12% saying they had seen a decrease.
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Despite the good news, private equity fund managers expressed concern about challenges, too. Fundraising was named as their biggest challenge this year, stated by 37% of respondents. This was followed by valuations for potential investments, named by 32% of firms.
Through 2014, private equity firms invested $332 billion in buyout deals and $86 billion in venture capital investments. Managers worldwide currently have more than $1.1 trillion available in dry powder (uncalled capital commitments) for private equity investments
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