Pension Funds Continue Their Sale of Private Assets

Several pension funds, including the New York State Teachers’ Retirement System (NYSTRS), BCICPP Investments | Investissements RPC, and the Caisse de dépôt et placement du Québec (CDPQ), have embarked on a divestment strategy, aiming to sell their private assets in the secondary market. The NYSTRS is seeking to offload $6B worth of private assets, while BCI and CPP Investments are actively searching for buyers to assume stakes valued at $2B and $3B, respectively. Moreover, CDPQ divested $2B worth of assets last year and intends to undertake additional divestitures this year.

These sales represent a deliberate effort by pension funds to diversify their exposure to specific asset classes, with some also seeking to allocate funds to new managers. Given the recent volatility in public markets and the waning appetite for initial public offerings, secondary sales have become increasingly attractive options.