Private equity investments are continuing their popularity with ultra-high-net-worth investors, according to Tiger 21, an educational and networking organization for wealthy investors.
Private equity allocations increased to 22 percent during the second quarter of 2014, a 2 percentage point increase over the previous quarter, Tiger 21 announced Thursday.
The investment level matches the record high reached by the category in the first quarter of 2013 and represents the most significant allocation increase since Tiger 21 began tracking members’ portfolio allocations in 2007, according to the asset allocation report. The report is designed to show shows how Tiger 21’s 265 members in North America invest. During the past five years, private equity has seen a steady increase from a low of 9 percent in early 2008.
Public equity investments decreased 1 percentage point in the second quarter of this year to 23 percent. Public equity has captured between 23 percent and 24 percent of the investments for the past eight quarters, Tiger 21 reports.
Cash and cash equivalents rose 1 percentage point in the second quarter to reach 11 percent, the same range they have held for the five quarters.
“There have been few surprises in the latest asset allocation reports. Tiger 21 members have kept a considerable presence in public equities, but have shown a greater appreciation for private equity investments, particularly direct investments where they can create long-term value in companies,” says Thane Stenner, managing director and founding member of Tiger 21 Canada.