Investments
Private Equity
Allocation
2.3%
Annual Return
15.42%
Exposure
$187 M
Benchmark
9.69%
2023 Performance
Private equity assets generated a return of 15.42% in 2023, compared to our benchmark of 9.69%.
Returns were driven by organic earnings growth and our mergers and acquisitions activities across portfolio companies. This was particularly true in our software and industrial sectors. The challenging business environment and elevated interest rates did, in limited circumstances, impact top-line growth and operating margins. Valuations for high-quality and recession-resilient assets we own generally remained stable or increased throughout the year. Two of our co-investments, Clarios and CDK, performed exceptionally well in 2023.
Investment Approach
We invest in companies with solid business fundamentals, strong management teams, and opportunities to grow both organically and through acquisitions. We focus on four core verticals: business services, healthcare, industrials, and software and technology. The companies we invest in are primarily headquartered in North America and Europe. The portfolio consists of funds (70%) and co-investments (30%).
Capital Allocation
At the end of 2023, total investment in private equity was $187 million, up from $130 million in 2022. Private equity now makes up 2.3% of total Fund assets. The increase was driven by valuation gains, additional investments in existing funds, and new co-investments in CDK and Ping Identity.
In 2024, we plan to continue growing our investments prudently, aiming to reach the 3% allocation target for this asset class.
Private Equity
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Allocation
2.3%
Annual Return
15.42%
Exposure
$187 M
Benchmark
9.69%
2023 Performance
Private equity assets generated a return of 15.42% in 2023, compared to our benchmark of 9.69%.
Returns were driven by organic earnings growth and our mergers and acquisitions activities across portfolio companies. This was particularly true in our software and industrial sectors. The challenging business environment and elevated interest rates did, in limited circumstances, impact top-line growth and operating margins. Valuations for high-quality and recession-resilient assets we own generally remained stable or increased throughout the year. Two of our co-investments, Clarios and CDK, performed exceptionally well in 2023.
Investment Approach
We invest in companies with solid business fundamentals, strong management teams, and opportunities to grow both organically and through acquisitions. We focus on four core verticals: business services, healthcare, industrials, and software and technology. The companies we invest in are primarily headquartered in North America and Europe. The portfolio consists of funds (70%) and co-investments (30%).
Capital Allocation
At the end of 2023, total investment in private equity was $187 million, up from $130 million in 2022. Private equity now makes up 2.3% of total Fund assets. The increase was driven by valuation gains, additional investments in existing funds, and new co-investments in CDK and Ping Identity.
In 2024, we plan to continue growing our investments prudently, aiming to reach the 3% allocation target for this asset class.