Texas Teachers trims PE, but still sees promise; Returns may improve with increased competition in 'maturing' asset class

Private equity may be maturing and competition increasing, but large institutions may benefit from increased competition by seeing better returns on existing investments, said Jase Auby, chief investment officer of the Texas Teacher Retirement System. "Many others have noted that higher interes...

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Bibliographic Details
Published in:Pensions & investments (1990) 2024-10, Vol.52 (14), p.2
Main Author: Kozlowski, Rob
Format: Article
Language:English
Subjects:
Asset allocation
Competition
Competition (Economics)
Emerging markets
Government bonds
Hedge funds
Inflation
Institutional investments
Investors
Pension funds
Portfolio management
Private equity
Teachers
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Summary:Private equity may be maturing and competition increasing, but large institutions may benefit from increased competition by seeing better returns on existing investments, said Jase Auby, chief investment officer of the Texas Teacher Retirement System. "Many others have noted that higher interest rates weigh quite heavily on private equity transactions because they are levered, and so they're having to pay more for the debt that they used to lever." [...]on Sept. 18, Federal Reserve officials approved a half-point rate cut as a response to a softening job market and cooling inflation, lowering the federal funds rate to a range of 4.75% to 5% from 5.25% to 5.5%.
ISSN:1050-4974
1944-7671