Originally published: Alternative Credit Investor, 14 January 2025
Pension fund managers have raised concerns over liquidity, with exposure to private credit being cited as one of the foremost reasons.
Nearly one in five (18 per cent) pension funds said they do not have enough liquidity to withstand adverse scenarios, according to a survey from pension fund risk and return consultancy Ortec Finance.
Over the last decade, pension funds have increased their investments in private assets to boost returns through the illiquidity premium, but now funds are reflecting on their potential liquidity risks.
Independent research company Pureprofile interviewed 100 senior pension fund executives across Europe and North America. The survey was conducted during November 2024.
