Access to top PE funds a major issue, says Mercer

Tempted by private equity’s strong recent performance, many institutional investors are enthusiastically committing new money to alternative investments in 2006. However, with substantial new inflows of institutional money chasing the limited capacity of top-tier managers, there is a danger that many investors will be disappointed in future returns, cautions Mercer Investment Consulting, Inc. (Mercer IC). In this environment, investors in private equity must evaluate the talent and track record of private equity managers and take extra care to ensure that due diligence standards are met.