New Intralinks Survey Reveals Limited Partner Allocation Plans, Preferred Investment Methods
Annual survey sheds light on upcoming investment strategies and behaviors.
NEW YORK, June 13, 2018 – Intralinks®, the world's leading virtual data room (VDR) provider, announced today the initial results of its 2018 LP Survey which, among other things, found that nearly two-thirds of the limited partners (LPs) queried expect to increase their allocations to alternative investments in 2018.
“The equity markets this year are again seeing more volatility. As a result, diversification into actively managed alternative funds continues to be a strong ‘pull’ factor,” said Matthew Porzio, SVP Marketing & Strategic Business Development at Intralinks.
The second annual survey, a collaboration between Intralinks and Global Fund Media, covers a diverse range of topics including investment preferences, the operational due diligence (ODD) process, gender diversity, transparency and direct investing. More than 150 limited partners responded to the survey, the full findings of which will be published in September.
“The relationship between LPs and general partners (GPs) plays a significant role in everything from private equity capital and hedge funds to private credit and real estate investing,” said Leif O’Leary, CEO of Intralinks. “This survey provides critical insights into that relationship by giving GPs a crystal ball of sorts.”
Other key finds include:
Aside from commingled limited partnerships, nearly 50 percent of respondents are targeting direct investment vehicles in the year ahead as their preferred investment method. Separately managed accounts and co-investment vehicles follow at 33 percent and 29 percent, respectively.
Of those respondents interested in direct investing, more than 64 percent of respondents said they will focus on mid-market private equity investments over the course of the year. Just under 32 percent said they will focus on regional infrastructure. Core real estate and core-plus real estate account for about 30 percent of direct investment plans.
A vast majority of investors are disappointed by the level of transparency being reported by GPs. More than 70 percent of respondents felt transparency was ‘average,’ ‘could do better’ or ‘needs to significantly improve.’
Only 13 percent of respondents said performance of their alternatives portfolio over the past year had exceed their expectations, while 58 percent said the performance was broadly in line with their expected returns.
Nearly 68 percent of respondents said they had no concerns over how GPs handle personal information in light of new data privacy regulations like the General Data Protection Regulation (GDPR).
Just over one-half of respondents said they have in-house ODD teams. Just under 14 percent said they turn to external due diligence consultants to help assess managers, while 36 percent rely on a combination of in-house and external resources.
For more detailed information about the survey’s key takeaways, please visit https://www.intralinks.com/resources/whitepapers/2018-lp-survey.
Intralinks is a leading financial technology provider for the global banking, deal making and capital markets communities. As pioneers of the virtual data room, Intralinks enables and secures the flow of information facilitating strategic initiatives such as mergers and acquisitions, capital raising and investor reporting. In its 21-year history Intralinks has earned the trust and business of more than 99 percent of the Fortune 1000 and has executed over US$34.7 trillion worth of financial transactions on its platform. For more information, visit www.intralinks.com.
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