A concentrated bet on fewer, better GP relationships is paying off for one of Australia's largest superannuation funds. Built on selective manager and deal selection rather than a broad roster, the A$112 billion ($78 billion) Rest Super delivered private equity returns more than double the peer average last financial year, as the fund proactively courts top-tier PE firms instead of waiting to be approached.
The Florida State Board of Administration’s (SBA) commitment to venture capital over many decades has been a contributor to the fund's performance. Last year the team had 340 meetings and calls, reviewed 109 funds, carried out due diligence on 26 and invested in three. Successful IPOs and SPACs, plus realisations from investments made in 2013/14, have led to a standout performance.
The $160 billion Teacher Retirement System of Texas (TRS) has a long and celebrated prowess when it comes to investing in energy yet enduring underperformance in the asset class was a key focus during a recent board meeting.
The UK defined contribution fund, NEST has added a number of new asset classes to its portfolio over the past year – including infrastructure with a focus on renewables – but the fund is still missing an allocation to private equity. CIO Mark Fawcett spoke to Amanda White about the fund’s challenge to the industry on private equity fees, its focus on climate-aware portfolios and innovative approaches to portfolio management.
The composition of an investment committee is the most meaningful criteria in assessing diversity, equity and inclusion in private market fund managers according to Mercer.
Two of the world’s largest pension funds, the $626 billion Dutch APG and the $660 billion National Pension Service of South Korea (NPS), have joined forces in a partnership to invest in private assets including infrastructure and private real estate.
Pension funds around the globe should be putting their high-risk capital towards supporting venture funds that have a track record of seeing value in people, according to Vivienne Ming, Silicon Valley technologist, entrepreneur and theoretical neuroscientist. Ming believes that AI can be used to solve poverty, mental health, inequality and even predict who will spread COVID-19. She says technology can make all of our lives better.
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Private Equity