Some 84 per cent of investors that are planning to actively commit to funds in 2012 will consider forming new relationships this year, while 46 per cent will consider investing in a fund before it holds a first close, the report said.

However, it is clear that the investor universe remains cautious, and just 18 per cent will readily invest with first-time fund managers, while 55 per cent will not consider investing in such funds, it said.

The asset class has been hit by the financial turmoil of recent years, although as some private equity houses have told this publication, some of the best “vintages” for funds are those which commit money to work when market valuations are under pressure.

Among other findings of the report were that 35 per cent of investors are below their target allocations to the asset class; some 66 per cent of investors made new commitments in 2011, an increase of eight percentage points on the proportion that made new investments in 2010; 42 per cent of European investors in private equity are below their target allocations, compared to 14 per cent of North American investors. Additionally, 6 per cent of investors feel that private equity fund investments have exceeded their expectations, while 75 per cent feel that their expectations have been met.

Some 63 per cent of investors expect their private equity investments to achieve returns in excess of 400 basis points over public markets; 60 per cent of investors believe that Asia is offering the best opportunities for investment, while 42 per cent feel the same about North America. Over three-quarters  will consider investing in emerging markets.

The proportion of investors citing India as an attractive region in which to invest has fallen by 23 percentage points from December 2010, from 35 per cent to 12 per cent.

Some 27 per cent of limited partners plan to increase their allocations to private equity in the longer term.

“Despite the difficulties, the Preqin study shows that investors do remain positive about the asset class, and with significant numbers currently below their target allocations, and just under three-quarters planning to make new commitments in the coming year, it is likely that fundraising will improve somewhat over the course of 2012,” said Emma Dineen, manager at Private Equity Investor Data.

“However, more than 1,800 vehicles are currently on the road and more are set to be launched in the coming months, so the market will remain extremely competitive. It will be vitally important for fund managers to present investors with a compelling investment opportunity with LP-friendly terms and conditions to be in with a chance of raising capital for their vehicles,” she added.