Private equity, real estate victims of their own success
February 6, 2017 | by ARLEEN JACOBIUS | Pensions & Investments
Most alternative investments took a hit in assets in the year ended Sept. 30, as higher distributions than capital calls made their mark on defined benefit plan portfolios.
Pensions & Investments‘ annual survey of the largest U.S. retirement plans showed assets invested by defined benefit plans among the top 200 funds dropped 7.2% in private equity, 6.4% in hedge funds, 1% in real estate equity and 0.9% in real estate investment trusts.
There were a few bright spots: energy investments rose 52% and infrastructure, 16.2%, but both were coming off still-small bases.
Private equity and equity real estate particularly suffered from too much of a good thing.
Our firm has been using Blue Vault from the first year it was available.
We have found it to be a valuable tool to verify what wholesalers tell us and to dig deep into how the reported investments are really performing.
We appreciate that Blue Vault has expanded its services from initially covering REIT's to now also including BDC's.
Our clients also appreciate that we conduct this additional due diligence on their behalf.