Large U.S. pensions ramp PE pacing as some yearn to go direct

Private equity is one of the most popular investment strategies with large public systems in the U.S., based on how many institutions are boosting their target allocations to the asset class. But several large systems will be looking to do more than passively invest: many want a piece of direct deal action.

Co-investments are seen as an attractive way to reduce fees and allocate more capital, but access to direct deal flow is not always easy to get. LPs that take a more active role can be more effective partners for GPs, but they will need resources and governance structures that allow them to act decisively to approve and pay for deals, according to Brian Gildea, head of investments at Hamilton Lane.

“Big LPs really want to have more of a voice in terms of something that is more customized to their needs, rather than placing their assets in a blind-pool fund,” Gildea said.

Check out the full article, published by PE Hub, here:

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