Pension plans turn to private equity

Pension plans and institutional investors are flocking to private equity due to the current, low-growth economic environment.

Read: Primer on private equity

Recent studies reveal global pension plans have steadily increased allocations to private market investments over the past few years. For example, Towers Watson’s 2013 Global Pension Assets Study finds AUM dedicated to alternative investments reached 19% at the end of 2011, up from 5% in 1995.

What’s more, BNY Mellon’s 2013 report, called 10-year Capital Market Return Assumptions, predicts private equity is the only asset class that will achieve double-digit annual returns over the next decade.

Read more about the benefits of private equity, as well as on how plans are taking advantage of its potential returns.

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