Pension funds are increasing their exposure to private equity. Daniel Engel explains the reasons for this shift, the challenges faced by pension funds on the way and the different approaches they are taking.
Private equity is enjoying significant growth. PwC estimates that it could increase its assets from USD 3.6 trillion in 2013 up to USD 7.4 trillion by 2020. Pension funds, which traditionally invested into bonds and equities, are increasing their exposure to private equity and alternatives. eVestment predicts that pension funds will increase their alternative allocations from 15% of their portfolios to 19% in the next three years.
Read the full white paper at the link beneath Related Files