The USD 77.8 billion government agency currently guarantees payment of basic pension benefits earned by about 44 million American workers and retirees participating in over 27,500 private-sector defined benefit pension plans. PBGC invests in private equity from its USD 64.7 billion single-employer pool of assets, of which private equity currently makes up 3.2% (as of September 30th 2010), compared to 2.1% the previous year. PBGC’s private equity allocation has increased from USD 1.2 billion to just over USD 2 billion over the course of the last 12 months.
PBGC invests in a variety of private equity fund types including buyout, venture and distressed funds. It currently has approximately USD 507 million in uncalled private equity commitments and has no plans to sell any of its existing fund interests on the secondary market. It expects the majority of its investments in this asset class to be liquidated over the next 12 years.
Private equity investments account for the majority of PBGC’s alternative investment portfolio, which also includes investments in real estate. It currently has 3.9% of its single employer assets, or 3.2% of overall assets, allocated to alternatives.
Further information on the private equity allocations and investment plans of institutional investors is available via Preqin’s Investor Intelligence.