By Susan Barreto, Alternatives Watch
The Alternatives Watch Investor Scorecard tracked a total of $7 billion of institutional investor commitments in the month of February spread across 56 investment commitments across active private equity, real estate and private debt aims.
With increasing prevalence, allocators have been taking either direct stakes in individual companies, eyeing renewable energy prospects and taking on co-investment deals. Going into 2021, the Massachusetts Pension Reserves Investment Management Board and Japan’s GPIF are plotting real estate moves, while the Texas Employees’ Retirement System is looking at opportunistic credit within its growing emerging manager program.
Overall investors are hungry for yield in a challenging low-interest rate environment. U.S. institutional investors saw a strong close to 2020 with the equity market in the fourth quarter, helping fuel median gains of 12.5% for the year, according to Northern Trust Universe data. The Universe tracks the performance of more than 380 large U.S. institutional investment plans with a combined value of $1.4 trillion and found that pensions reported an annualized median return of 10.9% in 2020.
Private equity accounted for roughly $3 billion of the activity for the month, while real estate/infrastructure saw $2.7 billion in inflows with fewer than $500 million in allocations going to hedge funds.
The top 10 mandates are ranked in the chart below:
|February Investor Scorecard|
|Investor||Manager name||Fund name||Amount ($m)||Strategy|
|Canadian Pension Plan Investment Board||Hudson Pacific Properties||$625||infrastructure|
|Canadian Pension Plan Investment Board||Transurban Chesapeake (direct investment)||$624||private equity|
|Canadian Pension Plan Investment Board||Goodman Group and APG Asset Management||JV||$414||infrastructure|
|Canadian Pension Plan Investment Board||Greystar Real Estate Partners||JV||$350||real estate|
|New York State Common Retirement Fund||I Squared Capital Advisors||ISQ Global Infrastructure Fund III||$350||infrastructure|
|Florida State Board of Administration||CenterBridge||CenterBridge Capital Partners IV||$300||private equity|
|Florida State Board of Administration||Cerberus Capital Management||Cerberus Corporate Credit SBA||$300||debt|
|Canadian Pension Plan Investment Board||Renewable Power Capital||$297||infrastructure|
|Canadian Pension Plan Investment Board||LOGOS||JV||$200||real estate|
|Florida State Board of Administration||Blantyre Capital||Blantyre Special Situations Fund II||$200||private equity|