The Manager Survey
Phoenix American recently surveyed alternative investment fund managers on how interest rates have affected their fundraising. Here is how the interest rates have affected fundraising during the week of May 22 in the eyes of 846 alternative fund managers.
What effect do you feel the rise in interest rates has had on your fundraising?
The rapid rise in interest rates seems to have had a varied effect on fundraising for alternative managers. It is interesting that the lowest percentage responses to this question are at the extremes. Rates hikes do not seem to have been extremely good or bad for fundraising. The most fund managers felt the effect was at least somewhat positive. There is no reason investors should rush either toward or away from alternative investments because interest rates have risen but the perception that illiquid long-term investments are exempt from this kind of shock may make them seem a bit more attractive.
Methodology
The Manager Survey of private equity and venture capital fund sponsors is conducted weekly on an individual survey question basis. The sample of fund managers varies by question. No margin of error (MOE) is calculated. It is important to remember that while respondents to each question were a random sample, lower participation rates carry with them higher margins of error. Data was collected using email and an online panel.
