Digital infrastructure is quickly becoming one of the most sought-after strategies within real assets for public pension plans. Digital infrastructure funds invest in the critical assets that help power and support our increasingly data-driven and Internet-connected world. Funds invest in assets such as cell towers, fiber optics lines & network, and data centers.
The mercurial nature and uncertainty of the markets in 2020 left many industry observers wondering how public pension plan allocators would approach commitments to private markets funds in 2021. Crossing the midpoint of the year affords us the opportunity to pause and look back at how it has progressed in terms of private equity fundraising while also looking to the future to see what the rest of the year may hold for fundraising GPs.
After 2020, which saw London-based CVC Capital Partners take top spot for capital raised from US-based pension plans, data through the mid-year mark of 2021 from eVestment shows that interest in European fund managers and strategies remains robust.
As of 6/30/2021 the plans tracked by eVestment had reported 2021 commitments of over $10.3 billion to European strategies. Interest in the continent is spurred in part by pension plans seeking differentiated strategies from the crowded and frothy US market and more positive outlooks from consultants.
In June 2021 public pension plans reported $6.45 billion in commitments to private equity funds according to data tracked by Nasdaq eVestment. The total represents 111 commitments from 37 pension plans. June was the third highest month for commitments in 2021 trailing March ($10.8 billion) and April ($9.0 billion).
What will the introduction of retail capital mean for the private fund industry?
In the twelve months that have passed since the U.S. Department of Labor’s June 2020 announcement clarifying and confirming that 401k plans could deploy capital to the private markets, retail capital has been top of mind for investor relations and business development teams across the private markets industry.
Opinions and insights from institutional investors on the fees charged by private fund managers can be valuable feedback for GPs preparing to launch new funds as well as those seeking re-ups from existing investors.
In a panel discussion held during a recent eVestment-hosted event, Evolving Private Markets: Exploring the LP/GP Relationship of Tomorrow, we asked investors from three large pension plan operators for their thoughts on the state of fees in the private markets.
Each month, eVestment aggregates reported commitments from the public pension plan investors tracked by our market intelligence tool, Market Lens, to provide insights on the asset classes and fund managers to which and to whom these investors are committing capital.
With data through Q1-21 now collected, the March 2021 report highlighted a bumper quarter for private equity appetite from this investor group compared to Q1-20 – only to be outshone by private debt activity.
Diversity & inclusion initiatives are among the top priorities for fund managers in today’s private markets. In EY’s 2021 Global Private Equity Survey, over 70% of private equity managers surveyed said they have launched either documented or informal D&I initiatives.
Each year on April 22 we celebrate Earth Day, a day that serves primarily to bring attention to the impact that humans have on our planet and the importance of environmental protection.
Reducing carbon emissions is a consistent theme of Earth Day and we want to take the opportunity this year to highlight three pension plans that are working to do just that by expanding their allocations to renewable energy.
In this video we sit down with Sasha Jensen, founder & CEO of Jensen Partners to learn more about recent trends in private markets hiring and the progress being made on diversity and inclusion in the industry.