Private Equity Commitment Activity by Pension Plans Q2 2020 - Q2 2023

Private equity sees decreased commitment activity in 2023 from public plans

Authors

Nasdaq for Asset Owners

Andres Ramos

Published

Aug 23, 2023 10:02AM EDT

New commitments to private equity slow in 2023

In the second quarter of 2023, commitments to private equity reported by public pension plans dropped to one of the lowest levels seen in the trailing three years according to newly released data from Nasdaq eVestment.

Overall, public pension plan investors reported total commitments of $17.7 billion in Q2 2023, a 27.6% YoY decrease from the $24.5 billion reported in Q2 2022 and a 12.1% decrease from the previous quarter.

The total number of commitments reported, 215, was the lowest quarterly figure seen since Q3 2020. On average, pension plans allocated $82.4 million per commitment in the second quarter.

Alaska Permanent reported more private equity commitments than any other pension plan in the second quarter with 18 commitments to 14 different fund managers. The pension plan allocated $487.2 million total with most of that capital going to Crestline Investors ($100 million) and TA Associates ($100 million). The other 16 reported allocations averaged $18 million in size, demonstrating considerable flexibility from Alaska Permanent in terms of bitesize.

In terms of total dollars allocated, Washington State Investment Board was the most active pension plan in Q2 with $3.65 billion in reported commitments.

Insights on public pension plan commitment activity

The Private Markets Monitor report aggregates and analyzes data from the Nasdaq eVestment platform to deliver insights on reported fund commitments, new fund capital raising activity, and documents of interest across private equity, private debt, real estate and real assets.

Institutional asset owners can use the report to understand how their peers are navigating the market and where their allocating capital.

Read the full report here.