In this file, you will discover:
How U.S. pension funds use private equity to finance the retirement system and address demographic challenges.
Faced with a structural imbalance in which U.S. pension plans’ liabilities exceed $4,000 billion while available assets total only $2,900 billion (a coverage ratio of less than 70%), allocation to private equity has increased significantly. According to Pitchbook data, private equity in the United States has posted a median net return of 17.3% over ten years, outperforming the S&P 500’s 11.9% and traditional bond investments.
The report analyzes the long-term sustainability of this investment model and examines opportunities for its implementation in the European and French systems.
In particular, the document presents:
- The asset allocation strategies of the U.S. giants CalPERS ($502 billion in assets under management) and PSERS ($75 billion in assets under management);
- An exclusive interview with Darren Foreman, former head of private equity at PSERS, on risk management and fund manager selection;
- The Opteven operational case study, illustrating the transformation of a company funded by LBO and generating 330 million euros in revenue;
- A comparison of the regulatory and tax frameworks between the United States (ERISA) and Europe (ELTIF, Solvency II);
- The Impact of Compound Interest on Individual Retirement Savings, as Illustrated by Quantitative Simulations.
This report is intended for individual investors, wealth management advisors, asset managers, and institutional decision-makers seeking to optimize the management of long-term savings. This study provides a clear comparative overview to help understand the performance drivers of private equity as applied to retirement financing.
