With principal investors taking on increasingly large roles in the private market investment landscape, market trends and shifting investment strategies are evolving. Changing interest rates and evolving expectations affect how principal investors, such as sovereign wealth funds, public pension funds, family offices and endowments, allocate their capital. In addition, principal investors’ relationships with general partners are changing.
Boston Consulting Groups’ (BCG) Global Principal Investors Report 2024 provides an overview of the trends and underlying forces in the principal investing world, with a focus on sovereign wealth funds and public pension funds.
Combined, these entities manage $36 trillion in assets under management. Their allocations to private markets are increasing at an average of 10 percent per year over the past decade. With an emerging focus on diversification and higher returns, principal investors are shifting the outlook of asset a
