* Investors plan to accelerate private equity commitments
* Most have seen lifetime returns of less than 11 pct
* Some planning to reduce number of investments
LONDON, June 14 Private equity investors are
planning to commit more to the asset class over the next 18
months despite most having seen weak returns from their
investments, according to a new study.
Nearly two-thirds of investors plan to accelerate new
commitments to private equity funds over the remainder of 2010
and 2011, private equity firm Coller Capital said in its Global
Private Equity Barometer, released on Monday.
The plans to increase investments come in spite of falling
returns. Some 51 percent of investors have made lifetime returns
of less than 11 percent from private equity and over 20 percent
have made less than 5 percent, the study found.
"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 Coller chief investment
officer Jeremy Coller.
As the downturn intensified, the better private equity
managers have risen to the top, while those with poor
performing companies and without the operational skills to turn
them around have struggled.
One-third of investors said most firms do not have the
requisite operational skills, while the remainder said the
majority of firms have the talents, the study found.
Two in five North American private equity investors expect
to reduce the number of firms they invest in over the next two
years as they focus on the top performers. About a fifth of
European and Asia-Pacific investors plan to cut the number of
funds in which they invest.
(Reporting by Simon Meads; editing Karen Foster)