In today's edition, a $66 billion LP says sector selection should be left to the experts; Greater China PE gets a shot in the arm; LPs are supporting their GPs on climate issues.

Sector selectors

GPs: best placed to decide sector exposures?

It might be tempting in today's fast-moving investment environment for LPs to lean into particular sectors or themes (see: AI and defence). Sweden's Skandia Mutual Life Insurance is among those resisting this urge. Stefan Fällgren, head of private equity and infrastructure at the SKr630 billion ($66.3 billion) insurer, argues that GPs are better positioned to identify sector opportunities. "We believe that the best sector selection is done by the GPs themselves," he says.

Meanwhile, Greater China private equity receives a boost as international LPs return to the region after a period of caution. Additionally, LPs are increasingly backing their GPs on climate-related initiatives, recognizing the importance of sustainable investing and the role of private equity in driving the energy transition.