Gregg Gethard

Public pensions are contending with the dreaded denominator effect as the value of their public holdings plunges in the volatile markets.

LA City’s commitment is an example of a public pension system finding opportunities with newer funds and emerging managers despite the general preference of public system LPs to stick with established managers.

A heated marketplace has meant that many public pension funds are quickly reaching their annual commitment limits, with many also reupping with firms they have worked with multiple times.

The lag in private markets looms over LPs.

As is usually the case, increased rules mean higher compliance costs for those advisers who fall under regulation. For the biggest firms in the industry, those costs can be handled, but for smaller shops, and especially emerging managers, those costs could prove harmful.

Family offices, endowments also plan on increasing private equity allocations this year.

Many fear ‘unintended consequences’ from proposed rules.

Many investors may miss opportunities due to difficulties placing some investments into specific, defined asset classes.

Staff says added flexibility will help fund find more opportunities.

Insurers and other industry insiders say the SEC’s proposed indemnification rule, combined with other potential regulations outlined in the agency’s February announcement, will impact this corner of the industry.