Meketa Investment Group

Despite rampant LP appetite for co-investments, commingled funds in this space face natural barriers to their growth, including a more limited investor base and the need for extensive GP networks.

Some investors are scrutinising LP bases to ascertain whether managers will face increased pressure to deploy an excessive amount of capital beyond their original fund size.

Some 45% of global LPs plan to increase their private equity deployment over the next year, marking a substantial increase from 2024.

Continuation funds, NAV loans, dividend recaps and other tools have muddied the waters when it comes to investors ascertaining how distributed to paid-in ratios are generated.

The US’s second-largest public pension also approved a plan allowing it to leverage its total fund.

Customised investment accounts made up more than one-fifth of the pension’s $59.7bn PE portfolio.

Oregon’s private equity portfolio serves as a case study for the denominator effect’s impact.

Consistency in capital deployment and strategic direction are critical for the pension's PE programme to be at or near its potential, according to the asset class's head Greg Ruiz.