On the minds of CFOs
Our colleagues at Private Funds CFO last month published the results of their latest annual survey assessing the breadth of challenges and opportunities currently facing industry CFOs. Their Insights Survey 2025, conducted in partnership with RSM, found that these professionals are thinking creatively about their liquidity needs, shaking up investor relations strategies and fund structures, while also contemplating continuation vehicles and NAV finance (registration required).
PEI Group’s research and analytics team surveyed 120 private fund finance leaders across July and August 2024. Here’s a rundown of the key findings:
- Some 62 percent of survey respondents expect their next fund to be larger than its predecessor, while 12 percent expect to cut back. This represents a decline in optimism – last year’s survey revealed that 71 percent of CFOs predicted vintage-over-vintage growth.
- Over a third of survey respondents have extended their fundraising periods, while 23 percent have adjusted their fund size and 21 percent have explored new geographies in the hunt for investors.
- A third of survey respondents have decreased their sub line usage due to higher rates, while 15 percent have reduced their use of NAV finance. Some 28 percent have reduced deal leverage for new transactions.
- A little over half of this year’s survey respondents are currently evaluating use cases for AI, while 15 percent are already implementing solutions. A further 16 percent have yet to review the technology’s potential, while 15 percent have weighed the pros and cons and decided to hold fire.
Carney courts Canada?
Overnight came the news that Mark Carney, chair of Brookfield Asset Management, is contemplating a run to succeed Justin Trudeau as prime minister of Canada. Carney said he is “considering” entering the race to replace Trudeau as the leader of the ruling Liberal Party, per a statement shared with media outlets. Since autumn, he has been advising Trudeau’s Liberals on economic policy.
Carney joined Brookfield in 2020 after a long and high-profile career as a central banker. From 2013-20, he served as governor of the Bank of England, and from 2008-13, he served as governor of the Bank of Canada. Previously, Carney worked at Goldman Sachs in various executive roles, including co-head of sovereign risk, executive director of emerging debt capital markets and managing director, investment banking, per his LinkedIn profile.
As our colleagues at Buyouts note, along with chairing Brookfield, Carney heads its energy transition investing (registration required). Today, the multi-strategy firm has one of the market’s largest renewable power and transition platforms, with just over $100 billion of assets managed. Brookfield Global Transition Fund II has so far secured more than $10 billion against a $17 billion target.
Mostly because of this, Brookfield sits atop the Impact 50, affiliate title New Private Markets’ ranking of the largest managers of impact capital (registration required). Currently the United Nations’ special envoy for climate action and finance, Carney played a key role in launching and growing Brookfield’s platform. He was for this reason named game changer of the year for 2022 by Private Equity International.
“Few people can claim to have done as much as Carney to encourage the global finance industry to focus on climate action,” we wrote when announcing the award.
Essentials
Tokyo tailwinds
Buyout shop Aspirant Group is the latest Japanese firm to capitalise on the market’s fundraising tailwinds. The firm has closed its fourth flagship fund on its ¥86.7 billion ($548 million; €529 million) hard-cap, per a statement. AG IV Series Funds is 73 percent larger than its predecessor, which closed on ¥50 billion in November 2019, PEI data shows. AG IV will invest in mid-cap opportunities, targeting business succession, carve-out and turnaround deals.
AG IV’s close, which occurred in December, follows that of JGIA’s Fund III, which collected $433 million in March; Integral Corporation’s fifth flagship, which closed on $1.6 billion in May; and Marunouchi Capital’s Fund III, which closed on $672 million, also in December.
Japan-focused funds raised $8.74 billion in 2024 – just behind a record $9.1 billion in 2020, according to PEI data. These inflows reflect a wealth of succession needs among family-owned businesses, corporate restructurings and de-listing opportunities linked to Tokyo Stock Exchange reforms. Both local and international GPs are eyeing such deals, with KKR’s co-chief Joseph Bae noting in November that Japan is the firm’s second-largest investment destination after the US.
The market could see additional closes in the New Year, with Marunouchi Innovation Partners seeking $1 billion for its Climate Tech Growth Fund, SBI Holdings seeking ¥100 billion for its SBI Digital Space Fund, and Japan Post Investment Corporation having so far raised $483 million for its 2022-vintage Japan Post Investment II.
Dig deeper
Institution: Kenya Power & Lighting Company Staff Retirement Benefits Scheme Retirement Trustees
Headquarters: Nairobi, Kenya
AUM: KES36.5 billion ($282 million; €274 million)
Allocation to private equity: 4.6%
Kenya Power & Lighting Company Staff Retirement Benefits Scheme Retirement Trustees is currently underallocated to private equity, a contact at the pension fund told PEI.
The fund’s current allocation stands at 4.6 percent, well below its 10 percent target. The private pension fund primarily focuses on growth equity and venture capital opportunities in sub-Saharan Africa, and typically invests in bite-size ranges of $1 million-$5 million.
Based in Nairobi, the Kenya Power & Lighting Company Staff Retirement Benefits Scheme Retirement Trustees also pursues co-investment opportunities to enhance returns.
For more information on Kenya Power & Lighting Company Staff Retirement Benefits Scheme Retirement Trustees, as well as more than 5,900 other institutions, check out the PEI database.
