Private equity funds will struggle to raise capital without a strong track record and differentiation as investors eschew existing relationships and seek out new general partners, according to research by Coller Capital.

Funds of funds are particularly expected to suffer as the double layer of costs on top of weak returns drive away limited partners. A third of limited partners - investors in private equity funds - surveyed by London-based private equity firm Coller Capital said they were disappointed by returns from their investments in funds of funds.