The biggest fund in the world is going absolutely nowhere near private equity
The Norwegian government announced on Friday that Norges Bank Investment Management (NBIM), the nation's $1.6T sovereign wealth fund, should not add private equity investments to its portfolio, rejecting the fund management's recommendation to add private equity allocation in November 2023.
The last few years have seen an uptick of institutional investors, such as pensions and endowments, increasing their exposure to PE. However, high fees and difficulty tracking investment performance have made the Norwegian government wary of investing in the field.
With private equity funds already struggling to return capital to their investors during a period of record-high inflows, restraint by the Norwegian government may prove to be a shrewd decision.
The last few years have seen an uptick of institutional investors, such as pensions and endowments, increasing their exposure to PE. However, high fees and difficulty tracking investment performance have made the Norwegian government wary of investing in the field.
With private equity funds already struggling to return capital to their investors during a period of record-high inflows, restraint by the Norwegian government may prove to be a shrewd decision.
