Haynes Boone Partner Albert Tan, co-chair of the firm’s Fund Finance Practice, and Associates Angel Rendon and Danny Wang authored an article in the January issue of Sovereign Wealth Quarterly.
The article is a high-level summary of a panel discussion at the Sovereign Wealth Fund Institute’s (SWFI) annual fund summit in 2022, in New York City. The panel discussion, titled “What Will Private Capital/Equity and Usage of Fund Finance Look Like in 2025”, was held against a backdrop of rising interest rates, slumping public markets, inflation, geopolitical instability, and looming concerns of a recession in 2023.
Moderated by Albert, the panel featured Christian Hensley, Senior Managing Director, Equities and Credit at Investment Management Corporation of Ontario; Matthias Jahnke, Managing Director and Co-Head of Fund Finance Americas, at Wells Fargo Bank; and Prakesh H. Mehta, partner at Akin Gump Strauss Hauer & Feld.
Read an excerpt below of the article, which focused on the near-term future of private capital and fund finance and conveyed an appetite for investment in private capital amongst institutions and sovereigns.
According to SWFI’s data, institutional investors are maintaining or growing allocations to private capital, with public pension plans, and sovereign wealth funds allocating the largest percentages in capital among all investor types. Recent data reveals that these institutional investors make up the largest contributors to private capital of all investor classes.
In 2021, data from Preqin revealed that private capital fundraising surged to their highest level since the Great Financial Crisis, with a total of approximately $1.4 trillion raised from approximately 3,800 private capital funds. A steady, and robust climb over the last decade has seen the figures go from approximately: 1,200 funds – raising $300 billion in 2009, to, in 2022 through Q2, approximately $600 billion being raised by around 400 funds.
Excerpted from Sovereign Wealth Fund Institute Quarterly. To read the full article, click on the PDF below.
Sovereign Wealth Fund Institute Quarterly (see Page 6)
