During their third quarter earnings calls, the big fund managers outlined prospects for a range of funds, with a tilt toward niche strategies. That may set the tone for the entire private equity market, says Peter Martenson, Partner at Eaton Partners, a placement agent.
“At this point next year, fundraising should be as good as 2014 or better, as long as we don’t have a major native macro event,” he says. For instance, worries about European and Asian economies slowing down have not deterred investors, who are still increasing allocations to alternative investments in many cases, he adds.
The other prominent trend is a surge in new fund types, Martenson says.
“These platforms are very good at coming out with the next product, even if one of their flagship products is off cycle – the energy product, the real assets, the credit fund,” he says. “They are soaking up more capital from their current [limited partner] base as well as getting new investors.”
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