CPPIB Leads Global Pension Funds With $144B Allocated to Private Equity

The 20 pension funds with the largest private equity allocations committed $708 billion during the first 10 months of 2024.



The Canada Pension Plan Investment Board made the largest allocation to private equity of any pension fund during the first 10 months of the year, with $143.86 billion—which made up 24.6% of its portfolio—allocated to the asset class, according to S&P Global Market Intelligence data. The 20 pension funds with the largest allocations have committed a combined $707.6 billion to private equity, through the end of October

The California Public Employees’ Retirement System was a distant second with $83.5 billion—16% of its portfolio—allocated to private equity investments, followed by the California State Teachers’ Retirement System at $53.70 billion—15.5% of its portfolio. Rounding out the top five were the Washington State Investment Board at $47.89 billion—29% of its portfolio—and the New York State Common Retirement Fund at $39.08 billion—14.6% of its portfolio.

Australian superannuation fund Aware Super Pty Ltd. had the largest allocation to private equity outside of North America at $32.15 billion—26.5% of its portfolio, ranking seventh, just ahead of Saudi Arabia’s Hassana Investment Co. at $32 billion—10% of its portfolio.

Among the 20 largest allocators, the fund that committed the largest percentage of its portfolio to private equity was California-based health care company Kaiser Permanente, with $28.61 billion—49.9% of its portfolio.

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Blackstone was the most-preferred private equity fund manager among the pensions and accounted for the most private equity funds in the portfolios of CalSTRS, the State of Wisconsin Investment Board and the Minnesota State Board of Investment. TPG Capital LP, the second most popular manager through October, was the top fund provider for the Washington State Investment Board and the Teacher Retirement System of Texas.

CVC Capital Partners was the largest private equity fund manager for CPPIB in terms of the number of funds invested at 14, which includes CVC European Equity Partners IV LP, CVC Capital Partners Asia Pacific IV LP, CVC Capital Partners VII LP and CVC Capital Partners Strategic Opportunities II. The pension fund has committed a total of $5.67 billion to CVC’s funds, as of October 29. Additionally, buyout funds accounted for more than half of the funds to which CPPIB has committed capital—nearly four times as many as its next-most-used fund strategy.

More generally, global private equity-backed funding activity slowed in October, according to S&P Global Market Intelligence data. The number of venture capital deals declined 24% year-over-year to 1,151. In addition, total value came in at $18.80 billion, down 28.7% from the same period in 2023. When compared month-to-month, deal value fell from $20.95 billion in September, as the number of transactions fell from 1,307.

Private equity firms are optimistic about an improved fundraising environmentbut are not sure when that will happen, S&P wrote, citing recent earnings calls by CVC and Blackstone.

“We believe the market backdrop does remain challenging,” Rob Squire, a managing partner in CVC Capital Partners and its global head of client and product solutions, told analysts during its September 5 earnings call. “Many clients remain in what we would call a wait-and-see mode, given a combination of geopolitical uncertainty, market volatility, and, of course, continued questions around interest rate movements.”

Squire added that the “environment does make it harder to gain momentum, often requiring longer fundraising processes.”

However, Blackstone President Jonathan Gray said the private equity market is turning a corner. 

“We believe some of the best investments are made during times of uncertainty,” Gray said during the private equity giant’s third quarter earnings call. “Institutional investors are certainly feeling better.”

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Private Equity Continues as Top Performer for Pension Plans, Study Says


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CalPERS Reaches $53B in Climate Solutions Investments

The fund aims to make $100 billion in such investments by 2030 through its climate action plan and sustainable investments strategy.



The California Public Employees’ Retirement System
announced Monday that its commitments to climate solutions investments have surpassed $53 billion. 

In total, the $522.41 billion pension fund aims to allocate at least $100 billion to climate solutions investments by 2030, through what the fund calls the $100 Billion Climate Action Plan. The goal was set as part of the fund’s Sustainable Investments 2030 Strategy, adopted in November 2023. CalPERS also aims to reduce the carbon emissions intensity of its portfolio by 50% by 2030. 

“The energy transition underway represents one of the biggest investment opportunities in history,” CalPERS CEO Marcie Frost said in a statement. “We are providing the capital necessary to plant the seed for the low-carbon economy of the future.” 

At inception of the strategy, the fund identified $47 billion in existing commitments to climate solutions and made another $3.6 billion in commitments over the past year, primarily in the fund’s private equity and infrastructure portfolios. CalPERS is in the process of reviewing another $3.2 billion in climate solutions investments, which could be finalized in the next few weeks and months. 

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“We believe that making sound, long-term investments in climate solutions will generate outperformance while also providing the clean energy needed to meet the increased demands that people have for their homes, cars and technology,” said Stephen Gilmore, CalPERS’ CIO, in a statement. 

CalPERS’ climate solutions commitments include an investment in U.K. energy provider Octopus Energy, made alongside Aware Super of Australia, committing the capital through Generation Investment Management, which is chaired by former Vice President Al Gore.  

Related Stories: 

CalPERS Increases Climate-Related Investments by Nearly $10B 

CalPERS Returns 3.3% in the First Quarter, Decreasing Size of Buyouts in Portfolio 

CalPERS To Helm Climate Action 100+ 

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