China’s largest pension fund is looking to diversify its investments by moving money into private equity funds.
The Social Security Fund is seeking to invest 20% of its funds in foreign markets, and is looking for new ways to do it.
And while the fund can only invest 10% in private equity, that is still a sizable amount considering the fund’s growth. While only $11.4 billion now, if the fund’s assets continue to increase as expected, it will have $29 billion to invest in private equity by 2015.
In 2007, China’s sovereign wealth fund CIC bought 10% of private equity and asset management group Blackstone.