Law 360 article covered NEPC's latest Endowments and Foundations Quarterly Survey. In a turbulent marketplace plagued by ongoing geopolitical uncertainty and soaring asset valuations, endowments and foundations have displayed confidence investing their money with private equity fund managers because of their ability to produce high returns relative to other asset classes, according to a newly released survey.
Of 41 total endowments and foundations that participated in a survey from Boston-headquartered investment consulting firm NEPC LLC, released Monday, 51 percent said they plan to increase their exposure to private equity over the next 12 months. That’s up from 43 percent a year ago, and the bullish attitude comes despite the fact that 44 percent of those polled in this year’s third-quarter survey said they expect lower returns going forward, relative to historical norms.
“That’s probably the most interesting takeaway from the survey,” said Scott F. Perry, a member of NEPC’s endowment and foundation consulting practice. “You have these two things that are a bit at odds.”