For one of the world’s largest hedge funds, the U.K. pension fund crisis is just the start as central banks around the world raise interest rates and turn off quantitative easing.
Cathay Life Insurance tops the list of the largest investors in secondaries, committing $2.42bn to funds with vintages between 2016 and 2022.
A crisis probably was inevitable after a decade of too-low interest rates.
The US economy has been built around low interest rates. As rates rise, so will the fallout.
New Jersey would join a growing list of states to divest its pension fund from fossil fuel companies if a long-stalled bill passes.
The process, known as a tender offer, is among several options GPs have to deliver liquidity back to LPs at a time when distributions and fundraising are slowing.
Amid rising uncertainty, institutional investors are moving towards defensive sectors like industrial, according to James Jacobs, head of real estate for Lazard’s private capital advisory group.
The market rout is exposing the vulnerability of the US public pension system. Inflation and the tight labor market will force the worst-hit states into some hard decisions.
Co-investment brings benefits to both GPs and LPs, but unless tensions are resolved, there is a real risk that it could be regulated out of the market.
This news comes on the heels of Brightwood expanding its Risk and Underwriting groups this past April with the appointment of Frederick Jelks and Chris Halajian.
Financial Investment News is a key service provider for the asset management and financial services industries. For further details on our offerings, contact Victoria Dorage at [email protected]