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Laxman Pai, Opalesque Asia: Global pension funds collectively fell short of their intended allocation to private equity in the first quarter, revealed a study.
According to an S&P Global Market Intelligence analysis of data from 344 global pension funds, pension funds targeted an allocation to private equity of $276.4 million at the median. But the actual median allocation was just short, at $272.8 million.
"While seemingly a minor miss, it also represents a nearly $17 million swing from early January, when pension funds were net overallocated to private equity by an estimated $13 million," the report said.
Meanwhile, private equity fund managers have pension funds in mind as they work to rebuild momentum behind fundraising, which fell to a six-year low in 2023. Reversing an extended slowdown in exits would help.
Some of the cash returned to investors after the sale or IPO of a portfolio company is typically recycled into a new private equity fund, it said.
Incidentally, the value of global venture capital deals in the first quarter totaled $71.57 billion, down more than 2% from $73.31 billion a year earlier, according to Market Intelligence data.
Deal value for March totaled $19.80 billion globally, down over 40% from $33.09 billion for the same month in 2023.
Venture capital deals were fewer than a year ago, with the number of transactions declining year over year both in March and in the first quarter. ...................... To view our full article Click here
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