European funds of funds made almost no investments in 2009 but hope to make more next year, according to an INREV survey.
The survey’s 16 fund-of-fund manager respondents, which run 30 funds with target equity of €10bn, made only ﬁve equity investments, totalling €75m, by the time of the survey at the end of September. In 2008 they made 50 such investments, totalling €548m, and the year before 97, totalling €2.2bn.
But their ambition is to seek more opportunities in both the primary and secondary market. “They see opportunities next year for un-invested capital, with a focus on potential secondary market deals as well as 2010-vintage funds,” said Lonneke Löwik, INREV’s research director. Löwik said this year’s inactivity was partly down to a need to focus on existing investments.