U.S. institutional investors, including corporate and public defined benefit and defined contribution plans, conducted a total of 827 searches in the first six months of the year for mandates totaling about $74 billion, according to data compiled by Holmes Research. In the first six months of 2004, there were 707 searches totaling $72 billion, and 528 searches in the second half of 2004 totaling $66 billion.
Of the searches for the year as of June 30, 214 were for alternative investment vehicles totaling about $13 billion - the largest asset amount in any class. "That's a strong number, considering that 226 searches for alternative investment managers were conducted in all of 2004," said David Holmes, the firm's president. Of the 214 searches, 146 were conducted for venture capital/private equity funds; 36 for hedge funds; 19 for buyout funds; six for absolute return funds; two each for mezzanine, opportunistic and subordinated debt funds; and one for funds handling distressed securities.
Additionally, U.S. defined benefit plans conducted 162 searches for domestic equity managers; 88 for international equity managers; 83 for real estate managers; 38 for fixed-income managers; 11 for global equity or debt managers; four for managers handling multi-asset classes; and one each for managers handling balanced and bundled accounts, GICs and tactical asset allocation.