University of California Retirement System (UCRS) chief investment officer Jagdeep Singh Bachher called private equity a 'humbling reality check' after its 10.7% one-year return lagged public equities' 22.3%. UCRS holds 11.5% of its $119 billion portfolio in private assets, slightly below its 12% target. Higher interest rates prompted the system to cut its private assets allocation from 30% to 25% last summer. Bachher conceded PE 'loaded up' during past strong periods but noted illiquidity premiums haven't delivered in the short term. LPs like Alaska Permanent Fund and Kentucky Public Pensions Authority have flagged underperforming PE portfolios as public markets surged.

Net-zero investing is gaining traction through a revamped initiative offering looser commitments. The Net Zero Asset Managers (NZAM) initiative, previously suspended after BlackRock withdrew, now allows managers to set their own 2050 targets rather than commit 100% of assets. Signatories include Actis and Brookfield, with asset owners managing $3.7 trillion urging participation. A European fund manager noted this approach could make NZAM a gatekeeper for institutional allocations.

Pantheon expands in Japan by hiring Satoshi Mitarai, a veteran of Nippon Life Global Investors, as managing director in Tokyo. Mitarai joins Pantheon's Japan head, Akitoshi Yamada, who joined from Nippon Life in 2018. Japan is becoming a priority for GPs seeking institutional and private wealth capital, with Blackstone projecting it could rival the US in wealth inflows. Meanwhile, Investcorp raised $1.25 billion for its GP stakes vehicle targeting mid-market managers, highlighting strategic importance amid selective fundraising.