Missouri state treasurer Scott Fitzpatrick announced Tuesday that the state employees pension fund had pulled all its equity holdings managed by BlackRock Inc.
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.
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.