ABP considers smart beta benchmarks
APG, which manages ABP’s assets, has been using smart beta strategies for implementation for three years, the fund is taking it a step further and is now considering tilted benchmarks.
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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
PE LPs overweighting home-state is hurting returns
New research finds institutional investors favour investing in private equity general partners that are located in the same state as their organisation. This is intuitive as local knowledge and contacts attract investments. However research from Stanford University finds this bias is coming at a large cost – about $1.2 billion a year – particularly for
Recasting private equity after the financial crisis
This article published by the European Corporate Governance and written by Tilburg University academics examines the post-financial crisis trends in the private equity industry, showing investors are demanding the inclusion of more investor-favorable compensation terms in limited partnership agreements. The findings suggest these new terms not only provide the investors with more favorable management fee and profit
Integrity integral in search for managers: Mass PRIM
Integrity will form part of the due diligence process at Mass PRIM as it looks for private equity co-investment partners for the first time.
Data doesn’t lie: illiquidity premium doesn’t exist
There is no 3 per cent illiquidity premium in private equity, according to research by CEM Benchmarking. A cost drag on private assets cancels out the returns of investing in private equity and real estate for those investors that outsource to external providers, the research finds. CEM Benchmarking, which has a database of 354 pension
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