Other than this secondaries play, the $2.3bn pension may commit no further capital to private equity GPs this year as it struggles with a 'cash flow crunch'.
The New York State Common Retirement Fund committed $300m to a fund managed by Franklin Templeton Real Estate. It came as the state’s comptroller called for more flexibility in potentially increasing alternative investments.
The New York State Common Retirement Fund committed $550m in January, as the state’s comptroller has called for more flexibility in potentially increasing alternative investments.
Canada’s Caisse de depot et placement du Quebec suffered large falls in its real estate returns in 2008, with declines of 21.9%, the largest in its history. The pension fund is now seeking ways to stem future losses.
The UK buyout house has booked a €1.3bn impairment – half the value of the equity investment – on the 2007 deal. It will also return €80m of carry to investors, because according to chief executive Guy Hands, 'our investors have suffered and therefore our rewards should suffer'.
The long-standing fixture of the UK buyout landscape has told its new teams in Asia and Eastern Europe to either raise their own funds or face closure, as the firm seeks to slash costs.
Straddling the Atlantic 2009-03-01 Staff Writer ASSETS / FUNDS UNDER MANAGEMENT€1.7 billion as of 31 Dec 2008ALLOCATION TO PRIVATE EQUITY100%YEAR FIRST INVESTED IN PRIVATE EQUITY1988GEOGRAPHYNorth America50%Western Europe50%Central & Eastern EuropeMiddle East / AfricaAsia PacificLatin AmericaFUND TYPEGen
Two limited partner associations are beefing up their activities in response to the downturn. Kevin Ley reports
ING PEAL has been drawing on an A$20m credit facility to fund capital calls and will try to reduce some A$49m in undrawn commitments via secondary sales. It has also ceased paying dividends and making new investments.
Guy Hands’ firm has avoided shrinking its €5.4bn third fund by buying out three cash-strapped LPs at ‘a small premium’.