BDO, an accounting and consulting firm, has released additional findings from its second annual PErspective study, which involved the survey of over 100 senior executives at PE firms throughout the U.S. during November and December 2010. According to the survey, 56% of PE fund managers are receiving new commitments from limited partners, up from 40% in last year's study. 40% of the PE firms also reported that the majority of first-time commitments are coming from family offices.
70% of respondents currently expect their average holding period to be longer than a year ago, and 37% have extended average exit timelines by 12 to 18 months. Investors have also become more concerned with pricing, as 25% of the survey participants indicated that, in addition to portfolio performance, pricing is their primary concern for the upcoming 12 months.
For those currently job hunting in the industry, though, 2011 looks to be a more promising year with several PE fund managers looking to increase hiring. 63% intend to increase professional staff headcount at the operating company level, compared to 45% who increased headcount in 2010. Also, 42% plan to increase fund employee count, compared to 35% that did so last year.
Other survey findings include reactions to government regulations and expectations for portfolio companies concerning bankruptcy filings.
PitchBook assisted BDO in the conducting and analysis of the survey. To see the results, click here.