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Make-up of Institutional Private Equity Investors in the US Pacific Region - October 2013

by Alexander Nikas

  • 15 Oct 2013
  • PE

As the US economy continues to recover from the financial crisis and adjust to new financial regulatory changes, institutional investors in private equity in the Pacific region of the US continue to show resilience and growth. The Pacific region remains a strong center for all-manner of institutional investors allocating capital to the private equity asset class.

Preqin’s Investor Intelligence tracks 423 US Pacific-based investors that are currently either active or considering investing in the private equity asset class, accounting for nearly 15% of all investors in private equity in the US. The only region in the US with a higher percentage of investors is the Mid-Atlantic region — which includes major financial centers such as New York City and Philadelphia – accounting for over a fifth (22%) of all US-based private equity institutional investors.

Institutional investors based in the Pacific region of the US, excluding private equity fund of funds managers, have approximately $5.3tn in assets under management. On average, Pacific-based institutional investors have nearly reached their target allocations to private equity, which is at 11.9% of total assets, with an average allocation of 11.7% to the asset class.

Foundations make up the largest percentage of LPs in the US Pacific region, accounting for 26% of institutional investors based in the region. This is followed by endowments which represent 15% of investors located in the region. The largest investors in private equity in the Pacific region of the US include California State Teachers’ Retirement System; California Public Employees' Retirement System; Washington State Investment Board; and Oregon State Treasury. Together, these four LPs have a total of $83.7bn allocated to private equity, accounting for approximately 49% of all aggregate US Pacific-based investors’ allocation to asset class.

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