ALTERNATIVES

Institutional investors own nearly half of private funds — SEC data

Institutional asset owners held close to half of the net $6.7 trillion that private funds managed as of Dec. 31, showed the latest data reported by the SEC's division of investment management, risk and examinations office.

Corporate and public pension funds, non-profit organizations, insurance companies and sovereign wealth funds accounted for 44.9% of private fund assets, with 12.8% of the total held by public pension funds and 12.5% held by corporate pension plans, according to data from the SEC's “Private Funds Statistics” report for the fourth quarter of 2014, which was released Oct. 16.

Non-profits held 10.3% of total private industry fund assets, followed by sovereign wealth funds, with 5.4% and insurers, 3.9%. The largest holders of the balance of the $6.7 trillion universe were private funds themselves, holding 20.2% of the aggregate total.

More than half — 54% — of the net $3.4 trillion managed by hedge funds as of Dec. 31 was from institutional investors; private funds held 20.9%, the largest collective share of the hedge fund universe.

For private equity, 55.1% of the net $1.7 trillion was from institutions. Public pension plans held the largest stake, 21.8%, followed by private funds, which had a 21.8% share as of Dec. 31.