The top 20 global pension funds with the largest dollar allocation to private equity have devoted a total of US$707.60 billion to the asset class so far in 2024.

The big allocators prefer large, well-known firms. As of Oct. 22, Blackstone Inc. funds are the most popular, followed by TPG Capital LP, according to S&P Global Market Intelligence data.

Top allocator manager preference

Canada Pension Plan Investment Board (CPPIB) has the largest allocation at US$143.86 billion, representing more than 24% of its total assets, according to the data. The California Public Employees' Retirement System followed with US$83.50 billion and the California State Teachers' Retirement System with US$53.70 billion.

CVC Capital Partners PLC is CPPIB's top fund manager based on the number of funds invested. CPPIB is invested across 14 CVC funds, including CVC European Equity Partners IV LP, CVC Capital Partners Asia Pacific IV LP, CVC Capital Partners VII LP and CVC Capital Partners Strategic Opportunities II. CPPIB's total committed capital to CVC stood at US$5.67 billion as of Oct. 29.

– Download a spreadsheet with data featured in this story. – Read about global pension funds' actual versus target allocation to private equity. – Catch up on global trends in private equity dealmaking.

More than half of the funds to which CPPIB has committed capital are buyout funds. North America accounts for more than 44% of the total capital committed, while Asia comprises roughly 21% and Europe makes up about 17%.

CPPIB's recent investor commitments include US$600 million to Thoma Bravo Fund XVI LP, which is seeking capital, and more than US$500 million to CVC Capital Partners Fund IX, which has closed and is deploying capital. Both are buyout strategies with vintage years 2024 and 2023, respectively.

The pension fund's private equity investment segment recorded net income of C$1.41 billion for the first quarter of its fiscal year 2025 ended June 30, 2024, compared with a net loss of C$966 million in the same period a year earlier.

Mixed signals of fundraising revival

Private equity firms anticipate an improved fundraising environment, though the timeline is uncertain.

"Many clients remain in what we would call a wait and see mode, given a combination of geopolitical uncertainty, market volatility and, of course, continued questions around interest rate movements," Rob Squire, senior key executive at CVC Capital Partners, told analysts during the firm's earnings call Sept. 5.

"This environment does make it harder to gain momentum, often requiring longer fundraising processes, which themselves are nonlinear and often more back-ended than we've seen in recent cycles," Squire said.

Blackstone General Partner, President, COO and Director Jonathan Gray was more optimistic. "Institutional investors are certainly feeling better," Gray said on the firm's third-quarter earnings call.

"As we move into next year, as the IPO market gets better as we have more sales, that's that virtuous cycle of capital moving back to them and then allocating more."