Thursday, 2 October 2014
Last updated 13 hours ago
Sep 4 2013 | 10:13am ET
The Canada Pension Plan Investment Board is the world's biggest private equity investor, with $3.99 billion committed, according to new research from PEI.
The data provider has published a list of the 50 most active private equity investors who, as of March 2013, had together committed $75.2 billion to p.e. funds. The 10 most significant investors were responsible for over a third of that total or $29.21 billion.
North American institutions continue to dominate the industry with eight of the 10 largest investors based there.
“In the current fundraising environment, there's a clear split in fortunes between a small number of funds who are comfortably outstripping their targets, and others who continue to languish miserably short of theirs,” said James Taylor, editor of Private Equity International. "These numbers go some way to explaining that pattern. As we demonstrate, there are a small number of institutional investors allocating very large sums. Funds that can get those big investors on board will do very well, very quickly. Those that miss out will likely struggle.
“The research also shows that a well-positioned private equity general partner can still raise vast quantities of capital from a small number of institutions,” said Taylor.
Of the almost $4 billion allocated to primary private equity funds by CPPIB, for example, $654 million was committed to Behrman Capital’s $1 billion fund. A further $650 million was committed to CVC Capital Partners’ €10.5 billion European fund. CPPIB’s recent commitments to funds in Asia include $295 million to FountainVest’s second ‘China Growth Fund’ and $300 million to MBK Partners’ third Korea-, China- and Japan-focused vehicle.
Like many institutions, CPPIB has increasingly sought to invest directly into private equity deals, but primary fund commitments clearly remain a focus. With investment teams in North America, Europe and Asia, the institution maintains relationships with more than 80 GPs and ensures a minimum commitment size of $75 million.
PEI’s research also identified the largest private equity funds of funds by volume of commitments. Hamilton Lane was the most active sponsor, with total commitments of $2.3 billion in the 12 months to March this year. Adams Street Partners and Neuberger Berman also committed in excess of $1 billion.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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