Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

US endowments investing more in private equity

Friday, June 22, 2012

Bailey McCann, Opalesque, New York: US endowments are stepping up their investments in private equity according to a new report from global research firm Preqin. Of the endowments included in the report, 94% plan to increase or maintain their investments in private equity over the longer term. Over half of that group intends to make these investments before the year is out.

According to the report, North American endowments have increased their average allocation to private equity on a year-on-year basis from 8.4% of assets under management in 2007 to 13.2% in 2012. On average such institutions are now slightly over their average target allocation (12.5%) but very few are turning to the secondary market to sell fund interests. Most of that money is staying inside North America, respondents cited the region as the most desirable for private equity investments.

Despite the interest in private equity investments, many endowments are reporting difficulty accessing top-tier managers. 27% of those included in the report said that it was challenging to find best of breed funds to invest in. Currently, endowments represent 19% of all limited partnerships in North America and those allocations are often relatively higher than other investor types. 24% of endowments in the report said they were currently below their target allocations for private equity.

Going forward, endowments e......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably