Beta
The Indian Limited Partners Association
Pension Funds
These are investment funds set up to provide a retirement income for employees with the goal to maximize risk-adjusted returns to ensure that pensions are fully funded and can keep up with inflation. They invest in significant assets and reliable, steady returns, with a focus on low risk and transparency.
Pension funds typically heavily scrutinize areas of risk or potential loss in their investments.
Sovereign Wealth Funds
These are state-owned investment funds typically managing a country's excess reserves. The aim is to generate returns for the government and to promote economic growth.
These funds exist to invest national currency reserves and grow them for the country's future benefit. They generally invest in strategic investments that open new markets or expand existing ones, as well as investments that create jobs and enhance technological infrastructure.
Insurance Companies
Insurance companies have been one of the most important limited partners in private equity funds. They have large pools of permanent capital that they can deploy in a variety of long-term investments, including private equity.
Insurance companies focus on low-risk investments that provide steady returns for their policyholders. Their preference is to structure their investments in a way that minimizes risk, typically through the use of mezzanine debt.
Banks
Banks play a crucial role in private equity by providing financing for leveraged buyouts and other deals. They also offer a range of other services to private equity firms and their portfolio companies, such as cash management, treasury services, and M&A advisory.
In addition, banks often invest in private equity funds themselves, either directly or through fund-of-fund structures.
Endowment Funds
It is becoming a common practice in many colleges and universities around the world to attract donations from their alumni or from other donors. These funds are held collectively in an endowment fund.
Endowment funds have two principal activities:
- On the one hand, the management company of the fund is authorized to invest the endowment fund in a variety of asset classes, like private equity, and hedge funds. The assets are held with care and prudence such that their value is safeguarded and satisfactory returns are achieved.
- On the other hand, the income from this capital is used to pay for some of the university administration expenses as well as scholarships to brilliant and needy students. Some universities have very large endowments, among which are Harvard University, Yale University, Columbia University, and others. Indian universities have also started endowment funds in recent years.