Several global pension funds are reassessing their allocations to US private equity as heightened geopolitical tensions and policy unpredictability raise concerns over long-term capital stability.

However, a number of long-term institutional investors continue to maintain strong support for the asset class.

The Canada Pension Plan Investment Board, which manages $504bn in assets, is currently reviewing its nearly $50bn exposure to US private equity funds, including longstanding relationships with Blackstone, Carlyle, and Silver Lake.

Meanwhile, a major Danish pension fund has paused new commitments to US-based private equity, citing growing uncertainty around policy direction. AkademikerPension, managing $21.5bn, is also weighing portfolio changes that could reduce its exposure to the US market. CIO Anders Schelde said the firm is considering “significantly less strategic exposure to US assets within a half year or so.”

These moves come as the US private capital market experiences a fundraising slowdown, with international capital playing a critical role in sustaining deal activity and long-term growth.

Still, institutions like Caisse de dépôt et placement du Québec (CDPQ) remain steady in their commitments. CDPQ, with $341bn in assets, continues to allocate roughly half of its private equity portfolio to US investments. Martin Longchamps, head of private equity and credit, noted, “It’s tough to invest everywhere these days,” underscoring the broader volatility impacting global markets.

Despite temporary headwinds, US private equity remains a key destination for global capital, reflecting its enduring role in driving innovation and long-term value creation.

Source: Financial Times