The ability to make allocations to top-tier funds has never been so important as institutional investors in private equity brace themselves for what is expected to be a bumper fundraising year.

Managers with a proven track record are in the enviable position of being able to raise more capital than they need, even in challenging environments. The difference in performance between an average manager and a top-quartile one has been as much as 25% in annual net returns to investors, according to Thomson Venture Economics.