Rede Liquidity Index 1H 2021Report
We are delighted to publish this report, the 7th edition of the Rede Liquidity Index (RLI), looking at institutional investor sentiment towards private equity (PE) for the first half of 2021 and into the remainder of the year.
This is the first edition of the report since 2H 2019. In 2020, as the Covid-19 pandemic struck worldwide, we published a series of ‘pulses’ to capture, in real time, investor sentiment towards a PE landscape that was constantly shifting.At the start of the pandemic in March 2020, we reported our findings that 64% of LPs were expecting to reduce their PE deployment for the remainder of the year, with many expressing concerns about near-term capital calls, pre-Covid valuations, zero revenue days and the pace of forward deal-making activity.
By the end of the year, however, it became clear that a bounce back had taken place across a number of paradigms – certainly among buyout exit volume and aggregate fundraising volume. And when looking at LP portfolios, 94% of LPs surveyed by Rede Partners had seen the value of their private equity holdings increase by the end 2020, compared with the end of 2019.
It is against this backdrop that we present the findings of this 1H 2021 report. More than a year since the start of the pandemic, and as the world continues to take steps towards a ‘new normal’, it is our first opportunity to set the impact of Covid-19 on LP sentiment in clear context.