RESEARCH

The Determinants of Pension Funds’ Allocation to Private Equity

This paper by the French National Center for Scientific Research (CNRS) investigates the main determinants of pension funds investment in private equity funds, and particularly in venture capital and leverage buyouts in the US and Canada over the 1996-2011 period. The results show some important differences between pension funds allocating to private equity and more traditional assets.

The first ones are bigger, mainly diversified private funds. They do not consider the age of their members when deciding this type of allocation and they present a higher discount rate. Furthermore, they specially take into account their private equity returns in comparison to management costs. It also shows that pension funds investing in private equity do not distinguish between venture capital and leverage buyouts.

 

To access the paper, click here

The determinants of pension funds allocation to private equity

© Copyright: Whole articles from this website and newsletter cannot be reproduced without permission from the editor. If you wish to publish introductions to any article please ensure that it links to original content site www.top1000funds.com.au, and that it shows clear attribution to Top1000funds.com, plus author name and date. Failure to abide by this request will be considered a breach of copyright and legal action will be taken.

 
  • Filter:
  • News

    Intelligence on up to the minute items from around the globe

  • Investor Profile

    Behind the scenes summary of large institutional investors’ investment strategy and future plans

  • In Conversation

    Candid conversation with the leading investment experts

  • Analysis

    An in-depth examination of the latest investment trends and ideas

  • Insider

    An editorial perspective on what affects the people and processes in this industry

  • Research

    Cutting edge academic and practitioner insight

Measuring manager performance expectations

Institutional investors do not act on their own expectations when choosing fund managers, rather their ... [more]

AustralianSuper contemplates foreign outposts

Australia’s largest superannuation fund, AustralianSuper, is considering whether it should have its own investment management ... [more]

Stanford dumps coal: why divestment doesn’t work

The decision by the Stanford University endowment to divest from coal stocks might produce some ... [more]

The predictive power of portfolio characteristics

Investors still rely, to a great extent, on past performance to assess managers’ future performance. ... [more]

Does pay for performance work?

Governance experts say that paying competitive salaries for internal staff will have benefits across the ... [more]

GPIF continues equities rampage

The giant Japanese pension fund, the Government Pension Investment Fund, continues its quest to move ... [more]

Pension fund governance needs an overhaul, still

How much has pension fund governance changed in the past 16 years? Not much! A ... [more]

Asset owners take charge of the tender process

A candid feedback loop from asset owners to managers following a tender process will help ... [more]

Fees eat diversification’s lunch

The balance between the allocating to the right number of asset classes and over-diversification is ... [more]