July 2013
2
Survey statistics
* Figures for some of these managers were obtained from publicly available sources and using data derived from the Global Billion Dollar Club, published by HedgeFund Intelligence
FoHF
Direct
Hedge
Funds*
Private
Equity FoF
Direct
Private
Equity
Funds*
Direct Real
Estate
Funds
Direct
Commodities
Funds
Direct
Infrastructure
Funds
Total
USD billion
Top 100 total assets
176.4
612.3
315.1
716.8
1,042.0
118.2
127.6
3,108.4
Top 100 Pension
Fund assets
90.8
123.3
260.8
189.2
522.9
19.4
121.8
1,328.2
Top 25 Insurance
Company assets
14.4
-
37.6
9.1
179.1
-
3.8
244.0
Top 25 Sovereign
Wealth Fund assets
16.1
20.0
-
57.3
46.6
-
14.8
154.4
Top 25 Endowment &
Foundation assets
8.3
14.8
6.1
26.5
13.7
2.9
-
72.3
Top 25 Fund of
Funds assets
-
59.8
-
52.8
2.8
2.6
-
118.0
Top 25 Wealth
Manager assets
16.6
55.3
-
35.6
212.9
94.6
11.4
426.4
Top 25 Bank assets
25.1
13.6
30.4
22.4
45.6
6.4
17.0
160.5
578 entries
are included in the survey. The majority of the data (533 entries) comes
directly from investment managers with the remainder coming from publicly available
sources. This includes the Billion Dollar Club list, published by Hedge Fund Intelligence.
Investor
Type
Manager
Type
3
Section I
Asset Class Trends
•
Hedge Funds
•
Private Equity
•
Real Estate
•
Infrastructure
•
Commodities
Section II
Top 100 alternative
asset managers by
AuM
•
The top 100 alternative asset managers globally by
4
Sections
Section III
Analysis of top
alternative asset
managers by investor
type
•
Top 100 alternative asset managers by Pension Fund assets
•
Top 25 alternative asset managers by Insurance Company assets
•
Top 25 alternative asset managers by Sovereign Wealth Fund assets
•
Top 25 alternative asset managers by Endowment & Foundation assets
•
Top 25 alternative asset managers by Fund of Funds assets
•
Top 25 alternative asset managers by Wealth Manager assets
•
Top 25 alternative asset managers by Bank assets
Section IV
Total universe
•
Analysis of all asset managers
6
Hedge Funds - Key Trends
The evolving hedge fund landscape
The FoHF industry continues to adjust to the new normal, with FoHFs increasingly working with investors in some form
of customised or bespoke manner. Continuing downward pressure on the FoHF fees has resulted in meaningful
reduction of the average manager fee rates, although the total fee burden for institutional investors remains significant.
Institutional investors continue to become more discerning about what they want from their hedge fund allocation, which
is low correlation to traditional markets, greater transparency, appropriate liquidity, alignment and appropriate fees.
Hedge fund managers are increasingly accommodative of institutional investors’ requirements, such that there is much
less of a ‘take it or leave it’ attitude in dialogue with investors.
Future outlook
In our view, there are only a small number of FoHFs that offer a credible capability so we expect consolidation in the
sector to continue. This could take the form of these firms seeking partnerships or ceding ownership to a larger parent
organisation that can offer broader alternative investment and global distribution capabilities.
We expect continued downward pressure on fees with investors taking advantage of their improved bargaining position,
strengthened in part by being long-term investors in the asset class.
While the larger managers across all hedge fund strategies are generally perceived to be ‘safer’ from a business risk
perspective, investors are also increasingly allocating in an informed manner to more modestly sized managers that
have a proven record of alpha generation.
Managed accounts continue to be a topic of discussion but in most cases the establishment of a specific share class in
an existing commingled fund offers an attractive method of allocation, in particular as the managers tend to have the bulk
of their net worth invested in the same vehicle.
Investors continue to view the hedge fund portfolio as a de-correlating and diversifying allocation and we can expect
strategies that offer very low correlation characteristics, as well as beta, to have prominence.
More prominent regulatory scrutiny is likely to continue in the foreseeable future.
7
Private Equity - Key Trends
The evolving private equity landscape
Funds of funds continue to grapple with the evolving landscape in which the appetite for traditional commingled fund of
funds solutions is diminishing further. These managers are now focused on separate accounts and co-investments,
increasing the complexity of their business. Only a few fund of funds organisations with significant scale have the ability
to adapt to the evolving business model so we continue to see consolidation in the industry.
Fundraising in private equity remains a challenge. The market has become increasingly bifurcated with those managers
boasting exceptional short- and long-term track records raising capital successfully while others struggle. This is
exacerbated by investors’ appetite to reduce the number of relationships they maintain.
Large sophisticated investors with significant capital and governance budget to deploy in private equity are increasingly
co-investing alongside their favoured managers.
Investors are focusing more on managing their illiquid investments holistically, meaning many private equity managers
are competing for capital with other illiquid strategies such as private debt, infrastructure and real estate.
Future outlook
We expect continued downward pressure on fees with investors taking advantage of their improved bargaining position.
One mechanism to achieve this goal will be more “strategic partnerships” whereby large investors provide meaningful
capital commitments across a manager’s pool of products in return for some form of cost reduction.
We also expect the secondary market to mature and grow in prominence, increasing the liquidity of the asset class.
In 3-5 years, we expect these trends to change the nature of the manager / investor relationship with increased
implementation options providing more flexibility for sophisticated investors. Primary fund investing will become just one
tool that large sophisticated investors use to get their private equity exposure. This will be supplemented with increased
co-investing, secondary activity and strategic partnerships for investors with the scale and governance to successfully
execute such strategies.
8
Real Estate - Key Trends
The evolving real estate landscape
Markets are increasingly polarised between prime and secondary locations. In the former investor interest is high, rental
growth is strong and yields are low; in the latter tenant demand is low and yields are high. This pattern holds for many
regions around the world with the yield spread between prime and secondary markets being at multi-year highs. In the
seemingly improving US economy, there are early signs that investors are moving into secondary locations in search for
additional yield.
Fundraising in real estate remains a challenge. The market has become bifurcated where managers with good track
records are raising capital successfully whilst others are struggling. We have seen a few managers withdrawing from the
real estate sector in recent years or altering their product offering. Fees have been declining since the global financial
crisis, particularly in Europe where fundraising has been most difficult, and several highly regarded managers have
introduced hard hurdles as opposed to preferred return (with catch-up) performance fee structures.
Funds of funds and multi-managers continue to grapple with reduced investor demand and problem legacy funds. These
managers are increasingly focused on co-investments and joint ventures to reduce costs and increase control.
As bond yields have fallen in recent years, investor appetite for real estate has been increasing. In particular there has
been growing interest in secure income real estate strategies, such as long lease property and senior real estate debt.
Investors are attracted to stable income streams, asset backing and yield spreads over investment grade credit.
Future outlook
We expect to see continued downward pressure on fees and more thoughtful fee structures for different real estate
strategies. We also expect increased investor interest in 1) co-investments and joint ventures, 2) non-domestic real
estate allocations and non-traditional sectors (eg, student housing, data centres), 3) secure income real estate
(especially if government bond yields remain low), 4) more granular consideration of real estate strategies between
secure income, traditional core and leveraged real estate strategies; and 5) sustainability ingrained property strategies.
9
Infrastructure - Key Trends
The evolving infrastructure landscape
Since the early 2000s, private infrastructure investing has gathered significant interests from institutional investors. This
is reflected in the large size of some infrastructure fund management organisations included in this survey.
During the last twelve months the largest institutional investors globally have been considering alternative methods for
accessing this asset class. A growing trend is for the largest investors in Canada, Asia and Australia to access deals
either directly or by co-investing with investment managers.
Future outlook
Institutional investors’ appetite for infrastructure assets and their core characteristics (stable yield and inflation-linkage to
name a few) continues to be strong and this should drive up total assets under management in infrastructure.
One of the trends seen during 2012 and into 2013 has been the ‘winner’ funds dominating, creating virtuous cycles of
successful and rapid capital raisings, while other funds have struggled to raise any capital. We would expect to see
those funds that can demonstrate a comparative advantage continuing to be attractive investments, with consolidation
elsewhere in the industry.
There has been significant discussion about the role that institutional investors may play in funding
government-supported infrastructure projects globally. In economies where government budgets are heavily constrained, it is vital
that those governments provide sufficient incentives for private capital to help address funding gaps. Renewed thinking
about regulatory frameworks and risk transfer between the public and private sectors will significantly impact the amount
of capital that ultimately gets invested in infrastructure assets around the world.
10
Commodities - Key Trends
The evolving commodity landscape
Underinvestment in natural resources and economic growth in China have supported a long-term upward trend in some
commodity prices since the 1990s. Throughout the global financial crisis this trend has persisted with the quantitative
easing programmes within the US and Europe helping to perpetuate it. However, more recent trends are less positive;
there have been large price falls in some markets, including gold, and the high correlation with equities has raised
concerns about the role of commodities in a diversified portfolio.
Future outlook
Investor sentiment towards commodities has declined more recently and investment in commodities has been sluggish.
It could be some time until we see any significant increases. However, it is becoming clear that opportunities are starting
to emerge as correlations decline.
In terms of accessing commodities, the more dynamic approaches offered in hedge fund structures are gaining
popularity, although there continues to be interest in passive beta-focused approaches. The more traditional beta and
enhanced strategies are known to be structurally challenged, and investors are now looking for smarter ways to access
them through “smart beta” products.
Towers Watson / Financial Times Top 100 Alternative Asset Managers by Total AuM
How to read this section
This section shows the top 100 managers ranked by total AuM. Each manager is counted separately in each individual
asset class, so they may appear multiple times if their AuM are large in more than one asset class. These top 100 are
analysed in relation to the regions they invest in and in relation to assets managed by investor type.
12
Executive summary
Top 100 Alternative Asset Managers
Top 100 Alternative Asset Managers
The top 100 alternative asset managers, ranked by total AuM, managed
USD 3,108.4 bn on behalf of their investors in 2012.
The largest block of alternative assets is managed in Direct Real Estate Funds
followed by Direct Private Equity Funds, Direct Hedge Funds, Private Equity Fund
of Funds, Funds of Hedge Funds, Direct Infrastructure Funds and Direct
Commodities Funds.
Pension Funds are the largest investor in alternative assets (over 36%), among the
top 100 alternative asset managers, followed by Wealth Managers
*
, Insurance
Companies, Sovereign Wealth Funds, Banks, Fund of Funds and Endowments and
Foundations.
In terms of where the assets are invested, North America accounts for the largest
amount of alternative assets, followed by Europe and Asia Pacific.
This is the first year we are including a breakdown by Wealth Managers, Fund of Funds and Banks in our analysis.
* Wealth managers are defined as: high net worth individuals, family offices, asset managers, corporate investors, government agencies, private companies and investment companies.
13
Top 100 Alternative Asset Managers
6%
20%
10%
23%
34%
4% 4%
Funds of Hedge Funds
Direct Hedge Funds
Private Equity FoF
Direct Private Equity Funds
Direct Real Estate Funds
Direct Commodities Funds
Direct Infrastructure Funds
Asset class
Total assets
Average
Smallest
Largest
Number of
funds
USD million
Funds of Hedge Funds
176,387.1
25,198.2
16,689.7
44,812.1
7
Direct Hedge Funds
612,291.1
24,491.6
14,800.0
84,042.0
25
Private Equity FoF
315,076.4
26,256.4
16,286.9
44,029.5
12
Direct Private Equity Funds
716,764.7
34,131.7
15,000.0
68,000.0
21
Direct Real Estate Funds
1,042,011.4
35,931.4
16,008.3
80,000.0
29
Direct Commodities Funds
118,233.5
39,411.2
15,964.5
74,000.0
3
Direct Infrastructure Funds
127,626.4
42,542.1
15,707.7
94,845.7
3
Total
3,108,390.7
31,083.9
14,800.0
94,845.7
100
14
Distribution by Investor Type
36%
9%
6%
2% 3%
19%
5%
19%
Pension Fund
Insurance Company
Sovereign Wealth Fund
Endowment and Foundation
Fund of Funds
Wealth Manager
Bank
Other
Asset class
Total
assets
Average
Smallest
Largest
Number of
funds
USD million
Pension Fund
1,130,371.9
14,308.5
129.6
63,076.0
79
Insurance Company
277,881.4
3,969.7
7.6
47,068.2
70
Sovereign Wealth Fund
185,762.6
3,148.5
17.9
16,600.0
59
Endowment and Foundation
76,107.8
1,170.9
1.2
8,200.0
65
Fund of Funds
108,505.2
2,583.5
64.8
8,220.0
42
Wealth Manager
579,846.4
7,731.3
4.1
70,669.1
75
Bank
144,708.9
3,078.9
25.0
27,339.3
47
* The category “Other” has been included for assets that could not be allocated into the survey’s categories, it has not been analysed in detail. ** Proportions might not sum up to 100% due to rounding
15
Distribution by Region and Asset Class
•
Asset managers were requested to state where their assets are invested.
37%
56%
41%
31%
30%
28%
30%
46%
28%
45%
57%
60%
32%
41%
10%
14%
8%
10%
8%
10%
18%
7%
2%
6%
2%
3%
31%
11%
Total
Direct Infrastructure Funds
Direct Real Estate Funds
Direct Private Equity Funds
Private Equity FoF
Direct Hedge Funds
Funds of Hedge Funds
Europe
North America
Asia Pacific
Other
* Direct Commodities Fund managers did not present a regional breakdown ** Some proportions might not sum up to100% due to rounding
16
Comparison 2011 - 2012
6%
6%
20%
21%
10%
9%
23%
22%
34%
35%
4%
3%
4%
4%
2012
2011
Funds of Hedge Funds
Direct Hedge Funds
Private Equity FoF
Direct Private Equity Funds
Direct Real Estate Funds
Direct Commodities Funds
Direct Infrastructure Funds
•
Total assets for the top 100 alternative asset managers decreased marginally from
USD 3,136.5 bn in 2011 to USD 3,108.4 bn in 2012 (under 1%). An analysis of the
assets of those managers that also appeared in this ranking in 2011 (86 managers)
showed an increase of around 1%.
•
The split by asset class is largely similar to last year with a small gain for Private
Equity FoF, Direct Private Equity and Direct Commodities at the expense of Direct
Hedge Funds and Direct Real Estate.
17
Comparison 2011 - 2012
Funds of Hedge Funds
•
Funds of Hedge Fund assets account for 6% of all assets managed by the top 100 managers.
•
Assets of those managers that also appeared in the 2011 top 100 ranking increased by 6%.
Direct Hedge Funds
•
Assets of those managers that also appeared in the 2011 top 100 ranking increased by over 4%.
•
There are 25 Direct Hedge Fund managers in the top 100 ranking.
Private Equity FoF
•
Assets of those managers that also appeared in the 2011 top 100 ranking increased by nearly 4%.
•
60% of these assets are invested in North America, with 30% being invested in Europe.
Direct Private Equity Funds
•
Assets of those managers that also appeared in the 2011 top 100 ranking increased by 3%.
•
88% of assets are invested in North America and Europe.
Direct Real Estate Funds
•
Assets of those managers that also appeared in the 2011 top 100 ranking declined by over 4%; the
only asset class which had such a decline, measured on this basis.
•
Direct Real Estate remains the largest asset class having over one third of all assets managed by
the top 100 asset managers.
Direct Commodities Funds
•
modest 1%.
Assets for the two managers that also both appeared in the 2011 top 100 ranking increased by a
18
Top 100 ranking ranked by Total AuM
* Figures obtained from publicly available sources and data derived from the Global Billion Dollar Club, published by HedgeFund Intelligence
Position Name of parent organisation Main country of domicile
Total AuM
(USD million) Asset Class 1 Macquarie Group Australia 94,845.70 Direct Infrastructure Funds
2 Bridgewater Associates United States 84,042.00 Direct Hedge Funds
3 CBRE Global Investors United States 80,000.00 Direct Real Estate Funds
4 BlackRock United Kingdom 74,000.00 Direct Commodities Funds
5 Goldman Sachs & Co United States 68,000.00 Direct Private Equity Funds
6 AXA Real Estate France 65,453.46 Direct Real Estate Funds
7 Brookfield Asset Management Canada 65,163.00 Direct Real Estate Funds
8 UBS Global Asset Management United Kingdom 65,036.61 Direct Real Estate Funds
9 Blackstone Capital Parters United States 57,090.00 Direct Private Equity Funds
10 TPG Capital United States 54,526.00 Direct Private Equity Funds
11 The Carlyle Group* United States 53,338.00 Direct Private Equity Funds
12 Blackstone Real Estate Partners United States 50,427.10 Direct Real Estate Funds
13 Deutsche Asset & Wealth Management United States 48,727.00 Direct Real Estate Funds
14 LaSalle Investment Management United States 47,700.00 Direct Real Estate Funds
15 Kohlberg Kravis Roberts United States 45,200.00 Direct Private Equity Funds
16 Blackstone Alternative Asset Management United States 44,812.07 Funds of Hedge Funds
17 AlpInvest Partners The Netherlands 44,029.50 Private Equity FoF
18 Credit Suisse Asset Management United States 41,907.80 Direct Real Estate Funds
19 Morgan Stanley United States 41,271.00 Direct Real Estate Funds
20 Oaktree Capital Management United States 41,208.50 Direct Private Equity Funds
21 Cornerstone Real Estate Advisers United States 41,016.60 Direct Real Estate Funds
22 Brevan Howard United Kingdom 39,915.62 Direct Hedge Funds
23 Goldman Sachs Asset Management United States 39,196.70 Private Equity FoF
24 Warburg Pincus United States 38,169.00 Direct Private Equity Funds
25 Prudential Real Estate Investors United States 38,133.00 Direct Real Estate Funds
19
Top 100 ranking ranked by Total AuM
* Figures obtained from publicly available sources and data derived from the Global Billion Dollar Club, published by HedgeFund Intelligence
Position Name of parent organisation Main country of domicile
Total AuM
(USD million) Asset Class
26 Apollo Global Management United States 37,800.00 Direct Private Equity Funds
27 Aviva Investors United Kingdom 37,303.80 Direct Real Estate Funds
28 Bain Capital United States 37,250.00 Direct Private Equity Funds
29 Principal Global Investors United States 36,873.89 Direct Real Estate Funds
30 Apax Partners United Kingdom 35,497.63 Direct Private Equity Funds
31 Advent International United States 35,061.97 Direct Private Equity Funds
32 BlueCrest Capital Management United Kingdom 35,001.00 Direct Hedge Funds
33 AEW Capital Management United States 34,769.10 Direct Real Estate Funds
34 Riverstone Holdings United States 34,354.72 Direct Private Equity Funds
35 J.P. Morgan Asset Management United States 34,206.00 Direct Real Estate Funds
36 TIAA-CREF United States 32,773.90 Direct Real Estate Funds
37 HarbourVest Partners United States 32,163.00 Private Equity FoF
38 Och-Ziff Capital Management Group* United States 31,900.00 Direct Hedge Funds
39 Invesco United States 30,544.70 Direct Real Estate Funds
40 CVC Capital Partners Luxembourg 30,127.43 Direct Private Equity Funds
41 J. P. Morgan Asset Management* United States 29,300.00 Direct Hedge Funds
42 PIMCO United States 28,269.00 Direct Commodities Funds
43 Credit Suisse Asset Management United States 27,740.80 Private Equity FoF
44 UBS Global Asset Management United Kingdom 27,447.49 Funds of Hedge Funds
45 Union Investment Germany 27,115.08 Direct Real Estate Funds
46 Baupost Group* United States 26,700.00 Direct Hedge Funds
47 BlackRock United Kingdom 26,635.20 Direct Hedge Funds
48 M&G Investments United Kingdom 26,507.00 Direct Real Estate Funds
49 Aberdeen Asset Management United Kingdom 26,443.60 Direct Real Estate Funds
20
Top 100 ranking ranked by Total AuM
* Figures obtained from publicly available sources and data derived from the Global Billion Dollar Club, published by HedgeFund Intelligence
Top 100 Alternative Asset Managers
Position Name of parent organisation Main country of domicile
Total AuM
(USD million) Asset Class 51 Winton Capital Management United Kingdom 25,637.00 Direct Hedge Funds
52 Adage Capital Management* United States 25,000.00 Direct Hedge Funds
53 Providence Equity Partners United States 24,813.03 Direct Private Equity Funds
54 Partners Group Switzerland 24,579.00 Private Equity FoF
55 The Permal Group United States 24,112.57 Funds of Hedge Funds
56 Hamilton Lane Advisors United States 23,814.62 Private Equity FoF
57 J.P. Morgan Asset Management United States 23,700.00 Private Equity FoF
58 Pantheon United Kingdom 23,456.00 Private Equity FoF
59 Silver Lake* United States 23,000.00 Direct Private Equity Funds
60 Goldman Sachs Asset Management United States 22,889.20 Funds of Hedge Funds
61 AMP Capital Investors Australia 22,611.90 Direct Real Estate Funds
62 HSBC Holdings United Kingdom 22,565.88 Direct Hedge Funds
63 AXA Private Equity France 22,397.75 Private Equity FoF
64 Grosvenor Capital Management United States 22,341.89 Funds of Hedge Funds
65 Credit Suisse Asset Management United States 22,116.00 Direct Hedge Funds
66 Elliott Management Corporation* United States 21,470.00 Direct Hedge Funds
67 Henderson Global Investors United Kingdom 20,353.00 Direct Real Estate Funds
68 AQR Capital Management United States 20,300.00 Direct Hedge Funds
69 EQT Private Equity Funds United Kingdom 20,021.00 Direct Private Equity Funds
70 LGT Capital Partners Switzerland 19,891.15 Private Equity FoF
71 D. E. Shaw Group United States 19,320.00 Direct Hedge Funds
72 Davidson Kempner Advisers* United States 18,700.00 Direct Hedge Funds
73 Farallon Capital Management* United States 18,600.00 Direct Hedge Funds
74 Bentall Kennedy Canada 18,230.62 Direct Real Estate Funds
21
Top 100 ranking ranked by Total AuM
* Figures obtained from publicly available sources and data derived from the Global Billion Dollar Club, published by HedgeFund Intelligence
Position Name of parent organisation Main country of domicile
Total AuM
(USD million) Asset Class
76 Adams Street Partners United States 17,821.00 Private Equity FoF
77 Paulson & Co.* United States 17,800.00 Direct Hedge Funds
78 King Street Capital Management United States 17,400.00 Direct Hedge Funds
79 BNP Paribas Real Estate France 17,233.00 Direct Real Estate Funds
80 Clarion Partners United States 17,188.69 Direct Real Estate Funds
81 Deutsche Asset & Wealth Management United Kingdom 17,073.00 Direct Infrastructure Funds
82 GoldenTree Asset Management United States 17,000.00 Direct Hedge Funds
83 Millennium Management United States 17,000.00 Direct Hedge Funds
84 General Atlantic* United States 17,000.00 Direct Private Equity Funds
85 BC Partners United Kingdom 16,837.27 Direct Private Equity Funds
86 Financial Risk Management United Kingdom 16,689.71 Funds of Hedge Funds
87 Cinven United Kingdom 16,672.16 Direct Private Equity Funds
88 Standard Life Investments United Kingdom 16,620.20 Direct Real Estate Funds
89 Capital Dynamics Switzerland 16,286.90 Private Equity FoF
90 Hines United States 16,135.10 Direct Real Estate Funds
91 Legal & General Investment Management United Kingdom 16,008.30 Direct Real Estate Funds
92 Viking Global Investors* United States 16,000.00 Direct Hedge Funds
93 Gresham Investment Management United States 15,964.50 Direct Commodities Funds
94 First Reserve United States 15,798.00 Direct Private Equity Funds
95 Global Infrastructure Partners United States 15,707.70 Direct Infrastructure Funds
96 Man United Kingdom 15,200.00 Direct Hedge Funds
97 SAC Capital Advisors* United States 15,000.00 Direct Hedge Funds
98 Leonard Green* United States 15,000.00 Direct Private Equity Funds
99 Goldman Sachs Asset Management United States 14,888.40 Direct Hedge Funds
100 Canyon Capital Advisors United States 14,800.00 Direct Hedge Funds
Section 3
Towers Watson / Financial Times Top Alternative Asset Managers by Investor Type
How to read this section
This section shows the top 100/25 managers ranked by alternative assets, managed on behalf of the above seven
investor types.
A.
Top 100 Alternative Asset Managers by Pension Fund Assets
B.
Top 25 Alternative Asset Managers by Insurance Company Assets
C.
Top 25 Alternative Asset Managers by Sovereign Wealth Fund Assets
D.
Top 25 Alternative Asset Managers by Endowment and Foundation Assets
E.
Top 25 Alternative Asset Managers by Fund of Funds Assets
F.
Top 25 Alternative Asset Managers by Wealth Manager Assets
G.
Top 25 Alternative Asset Managers by Bank Assets
24
Pension Fund Insights
Top 100 Alternative Asset Managers by Pension Fund Assets
Evolving alternatives landscape
While many pension funds have built up significant exposure to real estate in the past, they have not been early
investors in other alternative assets, like some endowments and foundations. However, this has changed in the last
decade and pension funds now represent the most significant source of capital for investment managers of alternative
assets, particularly in private equity and hedge funds. More recently, pension funds have also started allocating to
infrastructure and commodities.
Since the beginning of the global financial crisis there has been a noticeable move by pension funds from making
allocations to alternatives through funds of funds to a direct fund approach and sometimes co-investments alongside
general partners. A number of largest funds are moving towards a model adopted by some large Canadian pension
plans where they have built internal teams to invest directly in private equity and infrastructure.
While defined benefit (DB) pension funds continue to make significant allocations to alternatives, defined contribution
(DC) pension plans have hardly any exposure, mostly driven by regulatory requirements around liquidity and risk. The
industry is trying to find solutions which would allow DC pension funds to allocate more capital to alternatives for the
benefit of members whose current limited asset class choice is considered a constraint.
Future outlook
Alternatives continue to provide pension funds with both diversity and additional returns. We expect the trend of
increasing allocation to alternatives by pension funds to persist in the medium term. In the longer run, there is likely to be
bifurcation. While open pension plans are likely to continue to allocate to alternatives, the participation of DB pension
plans is likely to decrease significantly as these plans look to de-risk and gradually wind down their assets. Innovation
will be required to provide solutions for the growing DC pension fund market segment.
25
Executive summary
Top 100 Alternative Asset Managers
Pension fund assets managed by the top 100 alternative asset managers in the
sector amount to USD 1,328.2 bn in 2012. This represents 53% of their total AuM
(USD 2,499.9 bn).
Direct Real Estate Funds remain the most popular alternative asset for Pension
funds (over 39% of assets) with six such managers in the top ten. It is followed in
popularity by Private Equity FoF, Direct Private Equity Funds, Direct Infrastructure
Funds and Direct Hedge Funds.
Funds of Hedge Funds and Direct Commodities Funds have smaller allocations
relative to the other asset classes.
Top 100
Average
Smallest
Largest
USD million
Pension fund assets
13,281.8
5,096.3
63,076.0
Total assets
24,999.2
5,945.0
94,845.7
Overall Ranking
Average
Total AuM
No. of Funds
26
Distribution by Asset Class
7%
9%
20%
14%
39%
1%
9%
Funds of Hedge Funds
Direct Hedge Funds
Private Equity FoF
Direct Private Equity Funds
Direct Real Estate Funds
Direct Commodities Funds
Direct Infrastructure Funds
Asset class
Pension
Fund assets
Average
Smallest
Largest
Number of
funds
USD million
Funds of Hedge Funds
90,842.9
9,084.3
5,312.0
21,973.2
10
Direct Hedge Funds
123,257.7
12,325.8
5,139.3
50,658.0
10
Private Equity FoF
260,781.8
12,418.2
5,096.3
43,806.1
21
Direct Private Equity Funds
189,220.6
12,614.7
5,996.2
26,099.0
15
Direct Real Estate Funds
522,921.9
15,846.1
5,484.7
44,400.0
33
Direct Commodities Funds
19,373.6
9,686.8
7,597.9
11,775.7
2
Direct Infrastructure Funds
121,782.2
13,531.4
5,325.3
63,076.0
9
Total
1,328,180.7
13,281.8
5,096.3
63,076.0
100
* Proportions might not sum up to 100% due to rounding
27
•
Total Pension Fund assets increased from USD 1,234.0 bn in 2011 to USD 1,328.2 bn
in 2012 (nearly 8%).
•
Pension fund asset allocation in alternatives remained broadly similar to the previous
year.
7%
8%
9%
10%
20%
18%
14%
14%
39%
40%
1%
2%
9%
9%
2012
2011
Funds of Hedge Funds
Direct Hedge Funds
Private Equity FoF
Direct Private Equity Funds
Direct Real Estate Funds
Direct Commodities Funds
Direct Infrastructure Funds
Comparison 2011 – 2012
28
Comparison 2011 – 2012
Funds of Hedge Funds
Account for 7% of total Pension Fund assets, down from 8% in 2011. There are now ten
Funds of Hedge Funds managers in the top 100 ranking compared to 18 in 2011.
Pension Fund assets of those managers that also appeared in the 2011 top 100 ranking
increased by over 13%.
Direct Hedge Funds
Account for 9% of Pension Fund assets, a decline of 1% from last year. The number of
managers remained constant from 2011 to 2012 at 10.
Pension Fund assets of those managers that also appeared in the 2011 top 100 ranking
increased by nearly 12%.
Private Equity FoF
Private Equity FoF managers have the second largest amount of Pension Fund assets in
the survey. There are now 21 managers in this ranking compared to 16 in 2011.
Pension Fund assets of those managers that also appeared in the 2011 top 100 ranking
increased by over 7%.
Direct Private Equity Funds
This is a key asset class for Pension Funds having over 14% of assets in this ranking.
Pension Fund assets of those managers that also appeared in the 2011 top 100 ranking
increased nearly 12%
Direct Real Estate Funds
Account for over 35% of Pension Fund assets in this ranking.
Pension Fund assets of those managers that also appeared in the 2011 top 100 ranking
declined by 3%.
Direct Commodities Funds
There are two managers in this ranking, down from five in 2011, whose Pension Fund
assets increased by 11% in 2012.
Direct Infrastructure Funds
Pension Fund assets of those managers that also appeared in the 2011 top 100 ranking
increased by around 14%.
There are now nine managers in this ranking, down from 11 in 2011.
Top 100 Asset Managers – Pension funds AuM
Top 100 Alternative Asset Managers by Pension Fund Assets
29
Top 100 Alternative Asset Managers ranked by Total Pension
Fund Assets
Position Name of parent organisation Main country of domicile
Pension AUM (USD million)
Total AUM
(USD million) Asset Class 1 Macquarie Group Australia 63,076.02 94,845.70 Direct Infrastructure Funds
2 Bridgewater Associates United States 50,658.00 84,042.00 Direct Hedge Funds
3 CBRE Global Investors United States 44,400.00 80,000.00 Direct Real Estate Funds
4 AlpInvest Partners The Netherlands 43,806.10 44,029.50 Private Equity FoF
5 Prudential Real Estate Investors United States 32,516.80 38,133.00 Direct Real Estate Funds
6 TIAA-CREF United States 32,086.30 32,773.90 Direct Real Estate Funds
7 J.P. Morgan Asset Management United States 29,442.00 34,206.00 Direct Real Estate Funds
8 LaSalle Investment Management United States 26,450.00 47,700.00 Direct Real Estate Funds
9 Blackstone Capital Parters United States 26,099.00 57,090.00 Direct Private Equity Funds
10 Deutsche Asset & Wealth Management United States 24,929.00 48,727.00 Direct Real Estate Funds
11 Blackstone Real Estate Partners United States 24,739.10 50,427.10 Direct Real Estate Funds
12 Heitman United States 23,621.00 26,258.00 Direct Real Estate Funds
13 UBS Global Asset Management United Kingdom 23,511.22 65,036.61 Direct Real Estate Funds
14 Blackstone Alternative Asset Management United States 21,973.20 44,812.07 Funds of Hedge Funds
15 HarbourVest Partners United States 20,514.00 32,163.00 Private Equity FoF
16 Principal Global Investors United States 19,554.12 36,873.89 Direct Real Estate Funds
17 Brookfield Asset Management Canada 19,330.00 65,163.00 Direct Real Estate Funds
18 Oaktree Capital Management United States 19,080.90 41,208.50 Direct Private Equity Funds
19 Kohlberg Kravis Roberts United States 19,000.00 45,200.00 Direct Private Equity Funds
20 Credit Suisse Asset Management United States 18,352.00 41,907.80 Direct Real Estate Funds
21 Credit Suisse Asset Management United States 18,146.80 27,740.80 Private Equity FoF
22 Invesco United States 18,129.20 30,544.70 Direct Real Estate Funds
23 Pantheon United Kingdom 17,973.00 23,456.00 Private Equity FoF
24 Bentall Kennedy Canada 17,815.03 18,230.62 Direct Real Estate Funds
30
Top 100 Alternative Asset Managers ranked by Total Pension
Fund Assets
Position Name of parent organisation Main country of domicile
Pension AUM (USD million)
Total AUM
(USD million) Asset Class
26 Hamilton Lane Advisors United States 16,149.63 23,814.62 Private Equity FoF
27 Adams Street Partners United States 15,455.80 17,821.00 Private Equity FoF
28 Morgan Stanley United States 15,030.00 41,271.00 Direct Real Estate Funds
29 AMP Capital Investors Australia 14,941.90 22,611.90 Direct Real Estate Funds
30 Advent International United States 14,851.49 35,061.97 Direct Private Equity Funds
31 Partners Group Switzerland 14,753.00 24,579.00 Private Equity FoF
32 Aberdeen Asset Management United Kingdom 14,661.20 26,443.60 Direct Real Estate Funds
33 J.P. Morgan Asset Management United States 14,562.00 23,700.00 Private Equity FoF
34 Riverstone Holdings United States 13,741.89 34,354.72 Direct Private Equity Funds
35 BlueCrest Capital Management United Kingdom 13,332.00 35,001.00 Direct Hedge Funds
36 Clarion Partners United States 13,182.28 17,188.69 Direct Real Estate Funds
37 CVC Capital Partners Luxembourg 12,683.75 30,127.43 Direct Private Equity Funds
38 LGT Capital Partners Switzerland 12,662.95 19,891.15 Private Equity FoF
39 Brevan Howard United Kingdom 12,308.75 39,915.62 Direct Hedge Funds
40 AEW Capital Management United States 12,154.00 34,769.10 Direct Real Estate Funds
41 BlackRock United Kingdom 12,132.00 26,635.20 Direct Hedge Funds
42 Goldman Sachs Asset Management United States 11,857.40 39,196.70 Private Equity FoF
43 PIMCO United States 11,775.70 28,269.00 Direct Commodities Funds
44 Providence Equity Partners United States 11,598.16 24,813.03 Direct Private Equity Funds
45 Grosvenor Capital Management United States 11,366.54 22,341.89 Funds of Hedge Funds
46 First Reserve United States 10,904.45 15,798.00 Direct Private Equity Funds
47 Industry Funds Management Australia 10,768.00 12,532.00 Direct Infrastructure Funds
48 Pathway Capital Management United States 10,555.69 11,336.41 Private Equity FoF
49 Henderson Global Investors United Kingdom 9,593.00 20,353.00 Direct Real Estate Funds
50 GE Asset Management United States 9,116.40 9,170.60 Direct Private Equity Funds
31
Top 100 Alternative Asset Managers ranked by Total Pension
Fund Assets
Position Name of parent organisation Main country of domicile
Pension AUM (USD million)
Total AUM
(USD million) Asset Class 51 Bouwinvest Real Estate Investment Management The Netherlands 8,924.40 8,924.40 Direct Real Estate Funds
52 Mesirow Advanced Strategies United States 8,915.20 13,506.50 Funds of Hedge Funds
53 Standard Life Investments United Kingdom 8,720.50 16,620.20 Direct Real Estate Funds
54 Brookfield Asset Management Canada 8,709.60 14,420.00 Direct Infrastructure Funds
55 The Permal Group United States 8,644.92 24,112.57 Funds of Hedge Funds
56 Cinven United Kingdom 8,365.69 16,672.16 Direct Private Equity Funds
57 Legal & General Investment Management United Kingdom 8,209.97 16,008.30 Direct Real Estate Funds
58 Financial Risk Management United Kingdom 8,149.00 16,689.71 Funds of Hedge Funds
59 SL Capital Partners United Kingdom 8,114.10 8,299.10 Private Equity FoF
60 Deutsche Asset & Wealth Management United Kingdom 8,000.00 17,073.00 Direct Infrastructure Funds
61 Lexington Partners United States 7,983.10 12,281.70 Private Equity FoF
62 Portfolio Advisors United States 7,941.24 10,342.81 Private Equity FoF
63 UBS Global Asset Management United Kingdom 7,870.62 27,447.49 Funds of Hedge Funds
64 Hermes Real Estate Investment Management United Kingdom 7,825.50 8,190.40 Direct Real Estate Funds
65 Warburg Pincus United States 7,633.80 38,169.00 Direct Private Equity Funds
66 Gresham Investment Management United States 7,597.93 15,964.50 Direct Commodities Funds
67 BlackRock United Kingdom 7,504.50 9,479.90 Direct Real Estate Funds
68 Alinda Capital Partners United States 7,307.38 8,383.84 Direct Infrastructure Funds
69 Global Infrastructure Partners United States 7,179.20 15,707.70 Direct Infrastructure Funds
70 Bridgepoint United Kingdom 6,920.00 12,060.00 Direct Private Equity Funds
71 GoldenTree Asset Management United States 6,900.00 17,000.00 Direct Hedge Funds
72 Bain Capital United States 6,900.00 37,250.00 Direct Private Equity Funds
73 Pacific Alternative Asset Management Company United States 6,809.40 8,557.60 Funds of Hedge Funds
74 DTZ Investment Management United Kingdom 6,685.00 11,298.00 Direct Real Estate Funds
32
Top 100 Alternative Asset Managers ranked by Total Pension
Fund Assets
Position Name of parent organisation Main country of domicile
Pension AUM (USD million)
Total AUM
(USD million) Asset Class
76 AXA Private Equity France 6,396.23 22,397.75 Private Equity FoF
77 The Rock Creek Group United States 6,250.00 7,500.00 Funds of Hedge Funds
78 PIMCO United States 6,198.00 9,469.00 Direct Hedge Funds
79 PIMCO United States 6,177.90 11,373.30 Direct Real Estate Funds
80 Goldman Sachs & Co United States 6,081.00 10,700.00 Direct Infrastructure Funds
81 Nephila Capital Bermuda 6,018.60 7,893.50 Direct Hedge Funds
82 TIAA-CREF United States 5,996.20 6,056.80 Direct Private Equity Funds
83 Lend Lease Group Australia 5,975.01 10,329.00 Direct Real Estate Funds
84 QIC Australia 5,863.50 8,309.50 Direct Real Estate Funds
85 Coller Capital United Kingdom 5,797.00 11,014.00 Private Equity FoF
86 Aviva Investors United Kingdom 5,760.68 37,303.80 Direct Real Estate Funds
87 Cornerstone Real Estate Advisers United States 5,745.20 41,016.60 Direct Real Estate Funds
88 Capital Dynamics Switzerland 5,653.40 16,286.90 Private Equity FoF
89 Hines United States 5,606.90 16,135.10 Direct Real Estate Funds
90 Siguler Guff & Co United States 5,601.60 9,125.50 Private Equity FoF
91 K2 Advisors United States 5,552.00 8,698.00 Funds of Hedge Funds
92 Schroders Investment Management United Kingdom 5,484.68 11,796.59 Direct Real Estate Funds
93 AMP Capital Investors Australia 5,335.70 6,837.80 Direct Infrastructure Funds
94 Hastings Funds Management Australia 5,325.30 8,461.50 Direct Infrastructure Funds
95 Gottex Fund Management Switzerland 5,312.00 6,773.00 Funds of Hedge Funds
96 D. E. Shaw Group United States 5,296.00 19,320.00 Direct Hedge Funds
97 Lyxor Asset Management France 5,275.00 10,742.50 Direct Hedge Funds
98 BlackRock United Kingdom 5,195.00 14,772.00 Private Equity FoF
99 Beach Point Capital Management United States 5,139.30 6,403.60 Direct Hedge Funds
100 Hermes GPE United Kingdom 5,096.30 5,945.00 Private Equity FoF
Total 1,328,180.72 2,499,915.98
33
Five-year comparison
Managers that have participated for the past five years
•
Pension fund assets of the 22 Funds of Hedge
Fund Managers that have participated in the last
five years has risen steadily since 2008.
•
Pension fund assets of the 24 Private Equity FoF
Managers that have participated in the last five
years has grown significantly since 2008 (ignoring
a small decrease in 2009).
•
Pension fund assets of the 34 Direct Real Estate
Fund Managers that have participated in the last
five years have been volatile, falling in 2009
followed by a rise in 2010, maintaining that level in
2011, and falling again in 2012.
•
Pension fund assets of the 9 Direct Commodities
Fund Managers that have participated in the last
five years have had the biggest variation,
increasing by 146% in 2010 but then remaining
steady.
•
Pension fund assets of the 18 Direct Infrastructure
Fund Managers that have participated in the last
five years have been growing steadily at an
average of around 36%.
0
50
100
150
200
250
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Index Dec 2008 = 100
AuM Variation
Funds of Hedge Funds
Private Equity FoF
Direct Real Estate Funds
Direct Commodities Funds
Direct Infrastructure Funds
Section 3.B
35
Insurance Insights
Evolving alternatives landscape
Life insurers have been increasing their focus on, and allocation to, alternatives over the last few years, and the trend
has been underlined by the economic environment and regulatory changes, including Solvency II. Continued low bond
yields have been another key catalyst for increasing investor interest in alternative asset classes.
Future outlook
We expect the impact of these themes to grow in significance over the next few years, for three main reasons:
Institutional familiarity arising from already having made initial allocations
Existence of better value, more-aligned fee propositions for these assets
Continued need for better risk-adjusted returns
The alternatives universe is diverse, and there are micro preferences for some asset classes over others. Insurance
companies prefer longer term, secured, yield producing assets (eg, infrastructure), real assets that provide an illiquidity
premium (eg, real estate) and pooled funds which are transparent and insurance-reporting friendly.
36
Executive summary
Top 25 Alternative Asset Managers
Top 25 Alternative Asset Managers by Insurance Company Assets
Insurance company assets managed by the top 25 managers in the sector
amounted to USD 244.0 bn in 2012.
Direct Real Estate Funds represent the largest block of alternative assets for
Insurance companies (over 73%) followed by Private Equity FoF, Funds of Hedge
Funds, Direct Private Equity Funds and Direct Infrastructure Funds.
In this dataset, there was no investment in Direct Hedge Funds or Direct
Commodities Funds by Insurance companies.
Top 25
Average
Smallest
Largest
USD million
Insurance Company assets
9,758.1
3,812.0
47,068.2
Total assets
31,113.5
4,492.3
94,845.7
Overall Ranking
Average
Total AuM
No. of Funds
37
Distribution by Asset Class
6%
15%
4%
73%
2%
Funds of Hedge Funds
Private Equity FoF
Direct Private Equity Funds
Direct Real Estate Funds
Direct Infrastructure Funds
Asset class
Insurance
Company
assets
Average
Smallest
Largest
Number of
funds
USD million
Funds of Hedge Funds
14,350.4
4,783.5
4,019.8
5,466.6
3
Private Equity FoF
37,591.6
6,265.3
3,812.0
12,073.3
6
Direct Private Equity Funds
9,103.7
4,551.9
4,091.0
5,012.8
2
Direct Real Estate Funds
179,084.7 13,775.7
3,882.3
47,068.2
13
Direct Infrastructure Funds
3,822.1
3,822.1
-
3,822.1
1
38
Top 25 comparison 2011-2012
•
Insurance company assets increased from USD 201.6 bn in 2011 to USD 244.0 bn in 2012.
•
Insurance companies tend to focus on Direct Real Estate and that trend has remained
consistent.
•
There are 5 new responses in the top 25, insurance company assets from those managers
account for near USD 47.0bn (19% of total Insurance company assets on top 25).
•
Total Insurance company assets for managers who were in the top 25 ranking for both 2011
and 2012 increased almost 14%.
6%
6%
15%
11%
4%
8%
73%
74%
2%
2%
2012
2011
Funds of Hedge Funds
Private Equity FoF
Direct Private Equity Funds
Direct Real Estate Funds
Direct Infrastructure Funds
* Proportions might not sum up to 100% due to rounding
39
Top 25 Alternative Asset Managers ranked by Insurance
Company Assets
Position Name of parent organisation Main country of domicile
Insurance AUM (USD million)
Total AUM
(USD million) Asset Class 1 AXA Real Estate France 47,068.18 65,453.46 Direct Real Estate Funds
2 Cornerstone Real Estate Advisers United States 33,141.40 41,016.60 Direct Real Estate Funds
3 M&G Investments United Kingdom 26,507.00 26,507.00 Direct Real Estate Funds
4 AXA Private Equity France 12,073.32 22,397.75 Private Equity FoF
5 Principal Global Investors United States 12,068.38 36,873.89 Direct Real Estate Funds
6 Aviva Investors United Kingdom 11,301.74 37,303.80 Direct Real Estate Funds
7 CBRE Global Investors United States 10,000.00 80,000.00 Direct Real Estate Funds
8 AEW Capital Management United States 9,485.60 34,769.10 Direct Real Estate Funds
9 Capital Dynamics Switzerland 6,955.00 16,286.90 Private Equity FoF
10 BNP Paribas Real Estate France 6,724.00 17,233.00 Direct Real Estate Funds
11 BlackRock United Kingdom 5,977.00 14,772.00 Private Equity FoF
12 Blackstone Alternative Asset Management United States 5,466.57 44,812.07 Funds of Hedge Funds
13 Aberdeen Asset Management United Kingdom 5,255.60 26,443.60 Direct Real Estate Funds
14 Invesco United States 5,182.50 30,544.70 Direct Real Estate Funds
15 AXA Private Equity France 5,012.75 8,222.64 Direct Private Equity Funds
16 Amundi Alternative Investments France 4,864.00 6,830.00 Funds of Hedge Funds
17 HarbourVest Partners United States 4,706.00 32,163.00 Private Equity FoF
18 SWIP United Kingdom 4,281.00 12,129.00 Direct Real Estate Funds
19 Henderson Global Investors United Kingdom 4,187.00 20,353.00 Direct Real Estate Funds
20 Blackstone Capital Parters United States 4,091.00 57,090.00 Direct Private Equity Funds
21 PineBridge Investments United States 4,068.29 6,098.79 Private Equity FoF
22 AXA Investment Managers GS United Kingdom 4,019.80 4,492.26 Funds of Hedge Funds
23 Standard Life Investments United Kingdom 3,882.30 16,620.20 Direct Real Estate Funds
24 Macquarie Group Australia 3,822.08 94,845.70 Direct Infrastructure Funds
25 Partners Group Switzerland 3,812.00 24,579.00 Private Equity FoF
Section 3.C
41
Sovereign Wealth Fund Insights
Evolving alternatives landscape
Sovereign Wealth Funds remain a difficult investor group to analyse given how disparate their social and economic goals
tend to be. In essence, most Sovereign Wealth Funds are aiming to get more diversity in their asset allocation via
alternative asset classes and through the internationalisation of their asset base. However, some are still focussing only
on local and mainstream investments.
Future outlook
Sovereign Wealth Funds with sufficient scale are working towards accessing alternative assets directly without the
intermediary function of alternative asset fund managers. Many Sovereign Wealth Funds are strengthening their internal
investment capabilities to be able to expand the scope of what they are able to access directly, without outsourcing to
third party asset managers. More broadly, alternative asset managers will continue to attract capital from the small and
medium size Sovereign Wealth Funds. We also expect Sovereign Wealth Funds to continue diversifying into other
alternative asset classes beyond real estate and private equity.
42
Executive summary
Top 25 Alternative Asset Managers
Top 25 Alternative Asset Managers by Sovereign Wealth Fund Assets
Sovereign Wealth Fund assets managed by the top 25 alternative asset managers
amounted to USD 154.4 bn in 2012.
Direct Private Equity Funds and Direct Real Estate Funds have the largest share
of Sovereign Wealth Fund assets with 37% and 30% respectively followed by
Direct Hedge Funds, Funds of Hedge Funds and Direct Infrastructure Funds.
As in 2011, Sovereign Wealth Funds continued to shun Private Equity Fund of
Funds and Direct Commodities Funds.
Top 25
Average
Smallest
Largest
USD million
Sovereign Wealth Fund assets
6,174.4
2,578.2
16,600.0
Total assets
42,219.2
9,162.4
94,845.7
Overall Ranking
Average
Total AuM
No. of Funds
43
Distribution by Asset Class
10%
13%
37%
30%
10%
Funds of Hedge Funds
Direct Hedge Funds
Direct Private Equity Funds
Direct Real Estate Funds
Direct Infrastructure Funds
Asset class
Sovereign
Wealth Fund
assets
Average
Smallest
Largest
Number of
funds
USD million
Funds of Hedge Funds
16,093.7 8,046.8
6,176.8
9,916.9
2
Direct Hedge Funds
19,584.0
9,792.0
2,984.0
16,600.0
2
Direct Private Equity Funds
57,312.0 5,731.2
2,578.2
16,031.0
10
Direct Real Estate Funds
46,561.6
5,820.2
2,595.0
14,503.8
8
Direct Infrastructure Funds
14,808.3 4,936.1
3,204.1
6,605.3
3
44
Top 25 comparison 2011-2012
•
Sovereign Wealth Fund assets increased from USD 91.0 bn in 2011 to USD 154.4 bn in 2012.
•
Direct Private Equity Funds and Direct Real Estate Funds attracted large amounts of
Sovereign Wealth Fund assets in 2012.
•
On the other hand, Funds of Hedge Funds in this sample lost nearly a third of their Sovereign
Wealth Fund assets.
•
There are 8 new entrances on the top 25, those managers’ assets account USD 60.2bn (39%
of total Sovereign Wealth Fund assets on top 25).
•
Total Sovereign Wealth Fund assets for managers who were in the top 25 ranking for both
2011 and 2012 increased almost 40%.
10%
26%
13%
37%
29%
30%
39%
10%
6%
2012
2011
Funds of Hedge Funds
Direct Hedge Funds
Direct Private Equity Funds
Direct Real Estate Funds
Direct Infrastructure Funds
45
Top 25 Alternative Asset Managers ranked by Sovereign
Wealth Fund Assets
Position Name of parent organisation Main country of domicile
Sovereign AUM (USD million)
Total AUM
(USD million) Asset Class 1 Bridgewater Associates United States 16,600.00 84,042.00 Direct Hedge Funds
2 Warburg Pincus United States 16,030.98 38,169.00 Direct Private Equity Funds
3 Brookfield Asset Management Canada 14,503.80 65,163.00 Direct Real Estate Funds
4 Blackstone Alternative Asset Management United States 9,916.85 44,812.07 Funds of Hedge Funds
5 Blackstone Real Estate Partners United States 8,198.50 50,427.10 Direct Real Estate Funds
6 Blackstone Capital Parters United States 7,430.00 57,090.00 Direct Private Equity Funds
7 Kohlberg Kravis Roberts United States 6,900.00 45,200.00 Direct Private Equity Funds
8 QIC Australia 6,605.30 9,646.40 Direct Infrastructure Funds
9 Oaktree Capital Management United States 6,339.60 41,208.50 Direct Private Equity Funds
10 LaSalle Investment Management United States 6,300.00 47,700.00 Direct Real Estate Funds
11 BlackRock United Kingdom 6,176.80 18,094.20 Funds of Hedge Funds
12 AXA Real Estate France 5,438.06 65,453.46 Direct Real Estate Funds
13 Global Infrastructure Partners United States 4,998.90 15,707.70 Direct Infrastructure Funds
14 Advent International United States 4,645.02 35,061.97 Direct Private Equity Funds
15 CBRE Global Investors United States 4,100.00 80,000.00 Direct Real Estate Funds
16 CVC Capital Partners Luxembourg 3,729.46 30,127.43 Direct Private Equity Funds
17 Riverstone Holdings United States 3,435.47 34,354.72 Direct Private Equity Funds
18 Providence Equity Partners United States 3,323.29 24,813.03 Direct Private Equity Funds
19 Macquarie Group Australia 3,204.08 94,845.70 Direct Infrastructure Funds
20 BlueCrest Capital Management United Kingdom 2,984.00 35,001.00 Direct Hedge Funds
21 Bain Capital United States 2,900.00 37,250.00 Direct Private Equity Funds
22 J.P. Morgan Asset Management United States 2,826.00 34,206.00 Direct Real Estate Funds
23 Macquarie Group Australia 2,600.22 9,162.42 Direct Real Estate Funds
24 Morgan Stanley United States 2,595.00 41,271.00 Direct Real Estate Funds
25 Cinven United Kingdom 2,578.23 16,672.16 Direct Private Equity Funds
