NEPC’s Colin Hatton was recently quoted in Buyouts discussing the latest NACUBO and NEPC endowment reports, which highlight steady returns across U.S. institutions, the outperformance of public equities, and improving stability in private markets amid ongoing budget and liquidity pressures. Read the full article on the Buyouts website
Endowment reports released by both the National Association of College and University Business Officers (NACUBO) and NEPC showed steady returns for endowments in the US, a relief for CIOs after what has been a tumultuous year for the LP class.
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Public equities stood out as driving the yearly performance for mega endowments – those with at least $1.8 billion in AUM – according to NEPC’s survey. Non-US equity, global equity, EM equity and large-cap US equity all generated over 15 percent returns on the year, according to NEPC data.
That stands in contrast with private markets returns. Venture capital, credit and private equity all returned between 11.5 and 9.5 percent on the year.
But NEPC principal Colin Hatton told Buyouts that there is room to be optimistic about private markets. “If you look at even the weakest-performing large asset class, you still got a positive return out of areas like fixed income, ” he said. “Public equities obviously did very well, and private markets bounced back a bit, and they’re starting to show some much-needed stability going forward.”
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Both Anson and Hatton agree that endowments could engage in more secondaries activity as the year progresses and liquidity concerns continue to mount.