Pension funds corner the secondaries market

Pension funds account for about a third of disclosed commitments to vintages from 2010 onwards, according to PEI Research & Analytics.

The importance of secondaries to institutional investors was reinforced this week when we spoke to Phillip Cummins, principal of Queensland Investment Corporation.

After Cummins said many Australian institutional investors use the market strategically in order to correctly position portfolios, PEI’s Research & Analytics team analysed the type of investors committing to secondaries-focused funds.

Pension funds were the most significant investors, accounting for 62 percent of disclosed commitments to secondaries funds with vintages from 2010 onwards. This was followed by foundations and endowments, which made up 18 percent, with investments such as Michigan State University’s $25 million commitment to AXA Secondary Fund VI.

One question mark that hangs over the findings, however. Family offices are known to be active secondaries investors, but their private nature makes it hard to know just how active they really are.


Source: PEI data. Click to enlarge.