The USD 240 billion public pension fund has 4.5% of total assets currently allocated to alternative investments inclusive of infrastructure, real estate and private equity and is looking to increase its exposure to alternatives to represent at least 10% of total assets by 2014.. The pension fund’s allocation to alternative assets has shown a steady increase since 2006 when alternatives accounted for just 1.1% of its overall portfolio.
Today, NPS’s exposure to private equity is fairly minimal compared to other asset classes in its portfolio. It made its first commitment to a private equity fund in 2003 as part of a move to diversify its investment portfolio. Historically, the pension funds private equity investments have shown a particular interest in funds focused on South Korea, and it has also invested in US-based funds.
NPS has previously invested in a variety of fund types, and has shown a particular interest in buyout and distressed private equity funds. The pension fund also occasionally seeks co-investment opportunities. NPS is continuing to invest in the private equity asset class in 2010 and going forwards as part of its planned increase in exposure to alternatives as a whole.
More information on private equity investors can be obtained through Preqin’s online database Investor Intelligence