Private asset commitments cool in July, interest still there

Public pension plans collectively slowed their pace on private fund allocations in July. In total, about $2.2 billion was allocated to private funds during the month in 53 commitments, well below each fund class' average over the past 12 months. Their appetite however, still remains, with $115 billion in plan assets still open to adding new funds. Public pension plans' desire for private assets is highest for private equity and real estate allocations with 110 and 108 plans under allocated to those asset classes, respectively. EVestment estimates those underfunded allocations total about $40.9 billion in private equity capacity and $32 billion in real estate capacity.

Private equity is still the most common private asset class among institutional investors. Public pensions made $71.4 billion in new commitments since August 2018. Real estate funds came in a distant second at $31.7 billion. Private debt funds had a surge of new money in March, however, eVestment didn't offer detail on the nature of those inflows.