Chart of the week: Investors seek new relationships

The desire by LPs to reduce the number of GP managers they work with may be waning.

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Almost half of investors are interested in increasing the number of GP relationships over the next 12 months, according to Private Equity International’s annual LP survey.

Of the 100 investors polled, 18 percent plan to move in the opposite direction.

The message from investors in recent years has been a desire to reduce GP relationships. However, growing interest in the private equity market – demonstrated by a majority of respondents wanting to increase allocations to the asset class – is perhaps an indicator of a change in investor attitude towards fund manager relationships.

Successful fund management firms are not always able to cater for the surge in investor interest, causing LPs to look to other managers and, in turn, developing greater numbers of relationships.