Washington State Investment Board, private equity, pension fund
Secondaries pricing has become uncertain with inflation, supply chain disruptions, geopolitical turmoil and rising interest rates causing public market volatility since the beginning of the year.
Many pension funds are increasing PE stakes as annual returns remain strong.
1996 State Law Requires Fund to Eliminate Unfunded Liabilities by 2028
The portfolio sale, relatively small compared to the $1bn-plus transactions that hit the market since last year, is expected to get a lot of looks.
Elimination of preferred treatment could even the playing field but have other consequences.
Optimism on PE reigns after successful 2021, but several factors could soften valuations.
The presence of a US public pension system as a lead investor is a reflection of the growing sophistication and the desire on the part of some big US public plans to take more direct roles in investment management.
SWIB recently expanded the range of its target for added flexibility.
Presentations from HarbourVest and Pantheon show strong returns from secondaries as the niche market moves into pricing uncertainty.
LPs trying to keep up with managers they like are maxing out their private equity allocations in the first half of the year.

Copyright PEI Media

Not for publication, email or dissemination