We asked some of the leading figures from the institutions represented in the Global Investor 100 five questions on today’s private equity market. In the first of five articles, these executives share their thoughts on the role private equity plays in their investment portfolios. You can find the other four articles in the index box to the right of this page and on the Global Investor 100 welcome page.
What role are you looking for private equity to play in your overall investment portfolio?
Merrick McKay, head of Europe PE, Aberdeen Standard Investments (18)
“As the PE managers for our clients, it plays a 100 percent role in our portfolio! For our clients, their investment in the private equity asset class is designed to generate superior returns to those of public markets, with low risk of cash-on-cash loss, but where relative lack of liquidity is not an issue for part of their overall portfolio.”
Investment staff, Los Angeles County Employees Retirement Association (53)
“We view private equity as a form of equity. As such, we utilise private equity to complement our public equities portfolio by accessing equity investments that either are under-represented or unavailable in the public markets.”
Peter Teti, senior vice-president, private equity and relationship investing, and Mark Cormier, director, private funds and asset management, AIMCo (86)
“We expect private equity to drive attractive risk-adjusted returns that can exceed public market alternatives. To do that, we are focused on investing in top quartile funds and co-investments as well as investing with sufficient scale that private equity moves the needle for AIMCo.”
Lorenzo Levi, operational partner, private equity, CDPQ (4)
“Creation of value over the long term through partnership with like-minded partners and management teams.”
Robert Coke, head of buyout and residential property, Wellcome Trust (25)
“We believe the governance model in private equity gives it an advantage and has led to us extracting an illiquidity premium from our private equity portfolio over many years. We have a small number of mainly large-cap managers who have an edge, we believe, in terms of scale and capabilities.”
John Bradley, senior investment officer, private equity, State Board of Administration of Florida (22)
“PE is our highest return seeking asset class and should also provide some level of diversification within our entire equity portfolio.”