National Labor & Management Conference

Why Private Equity Secondaries Make Sense for Pension Funds

As pension funds strive to meet their assumption rate, private equity reigns as one of the few assets classes with expected returns north of 10%. However, the drawbacks of private equity including a blind pool of investments, J-curve, high fees and long lockups give investors pause. What if there was a way to gain exposure to private equity investments that virtually eliminated the J-curve, had quicker payouts, and provided returns in excess of a pension fund’s assumption rate…all at a discount?