Global survey reveals offer private equity to remain strong in 2017

Study reveals most Limited Partners (LPs) will maintain or increase their investment in offshore private equity funds.

Well over half of LPs globally (60%) plan to increase or maintain the amount of capital they have invested in PE funds in offshore locations in the next five years, according to research commissioned by leading offshore law firm, Mourant Ozannes. 

The research, which polled 260 Limited and General Partners across the world, also found that when it comes to mid-shore jurisdictions, 51% of LPs expect to increase or maintain investments. These survey outcomes are supported by the billions of dollars raised from global investors in 2016 and into 2017 by private equity mega-funds established offshore.

Mourant Ozannes Funds Partner, Ben Robins, said: "It is clear that both GPs and institutional investors across the globe remain positive about the role well-regulated and transparent offshore financial centres play in the PE market.  A significant majority are refocusing their attention on jurisdictions that provide tested, flexible and cost-effective structures for holding or financing international assets or operations."

Ben Robins added: "The research also indicated that the location of a fund is high on the list of factors that influence investment decisions. It is heartening to see that the PE market as a whole remains undeterred by media hype that paints a negative picture of all offshore centres, failing to differentiate between those that have taken a global lead in transparency and regulatory initiatives and those that have clung to an outmoded secrecy model.

"It is a fact that sophisticated offshore and mid-shore jurisdictions play key roles in oiling the wheels of efficient international financial transactions, and the industry is sending a very clear message through this survey that it understands this. Sentiment across the private equity industry globally remains upbeat as we kick off 2017."

According to the Mourant Ozannes study, almost nine in ten (88%) PE professionals worldwide hold a positive outlook on the private equity market over the next twelve months. This actually increases to 93% amongst UK-based PE professionals, the largest proportion globally, while in North America, 85% of private equity professionals are optimistic about the PE outlook over the next six months.