Business Weekly newspaper’s Post

Other than a handful of Pension Plans domiciled in Quebec, the rest of the Canadian Pension Plan ecosystem has for the most part missed out on literally billions of $ of value creation generated by Canada’s innovative life sciences companies over the past five years. It doesn’t have to be so. Engaging Canada’s pension plans in Canada’s innovative life sciences ecosystem is not about charity or as some have suggested about “risking returns for pensioners”. It is about exactly the opposite. It is about providing alpha, enhancing returns, supporting high value domestic job creation, providing highly leveragable insights that can be used to enhance public market strategies, fulfilling ESG and impact objectives, and finally ensuring Canadians and not foreign investors derive a greater share of the value created from Canadian innovations and the hard work of Canadian entrepreneurs. I don’t know much, but that sounds like a highly virtuous circle, and as a Canadian who cares deeply about creating a vibrant economy for Canadians and seeing Canadian Pension Pensions prosper for pensioners, I, and am sure many of my peers, would be more than happy to help these Canadian Pension Plans learn how they could join that circle.

Is venture capital too risky for pension funds? Wiltshire Pension Fund and Environment Agency Pension Fund don't seem to think so, as they have both allocated to the €300 million World Fund, which invests in startups that create value through decarbonisation technologies. The fund is pan-European, but it includes UK companies, such as Treecard, a consumer app that supports sustainable lifestyles and uses sponsorship revenue to plant trees; Mission Zero Technologies, which provides a direct air capture solution powered by renewable energy; Space Forge, which will use space's low-gravity, vacuum conditions to manufacture cutting-edge semiconductors that use 75% less energy; and ENOUGH, which has developed a sustainable protein source for meat alternatives. Wiltshire Pension Fund uses BlackRock's "SALAMI" (Strategic Allocation to Liquid Asset Matching Investments) strategy to ensure that liquidity is available for capital calls, while maintaining the portfolio's target asset allocation (i.e. avoiding cash drag). Really encouraging to see UK pension funds investing in enterprises actively creating climate solutions as an integral part of their Net Zero strategies. #impactinvesting #netzero #cleanenergy #energytransition #pensions #lgps Aysha Gilmore Danijel Višević Jennifer Devine Becky LeAnstey https://lnkd.in/exx6b7ce

LACERA, Los Angeles County Employees Retirement Association has voted to decrease the allocation to venture. "The board of investments voted to decrease its allocation range to venture capital and growth equity from between 15% and 30% of the pension system’s private equity portfolio, to between 5% and 25%. LACERA’s venture portfolio is currently 10.8% of the PE portfolio." https://lnkd.in/eijx2Mhi #endowments #pensionfunds #venturecapital #investing

💵 Over the past decade, the world’s most renowned pensions, endowments, and fund allocators lined up with their checkbooks to get a slice of VC returns. ⬇️ 📈 With more demand for venture exposure, larger fund sizes have naturally followed. Driven by the rise of mega-funds and sizable step-ups across subsequent funds, the average US venture fund size climbed from $84 million in 2013 to $154 million by Q4 2023. 🏷️ The resulting abundance of capital competing for high-quality deals has inflated valuations across stages. Today, VCs are forced to write much larger checks than they did ten years ago for equivalent equity and ownership. Naturally, this escalation has driven up financing round sizes, with later stages particularly experiencing significant increases. 🧮 Fund size inherently molds every facet of a venture firm’s strategy. Therefore, the upward trend in venture fund sizes over the past decade calls into question how the strategy of these funds may need to shift in tandem. Larger funds fundamentally recalibrate the venture return calculus — bigger funds need bigger outcomes. By taking on meaningfully more capital, VCs ratchet up the imperative for sourcing companies whose future value can deliver nothing short of a home run. 💡 While this longer term trend is well documented, the current environment for venture capitalists presents new fundraising challenges. Mega funds have raised new capital for vehicles much smaller than prior fund size peaks and LPs have become more cautious in both commitment size and pacing. Continue reading more on this topic to see the trend’s evolution and contrast with today’s challenging macroenvironment ➡️ https://lnkd.in/eZUDQtH3

With $40 trillion in assets under management, pension funds have the potential to drive real impact—but are they missing out? Low private equity returns signal the need for new strategies. The solution? Julie Castro Abrams shares that it is investing in emerging managers and diverse founders. Research shows: - 70% of top-performing funds were managed by new fund managers - Diverse-led startups generate 10% more revenue - Funds led by diverse managers saw an 18.3% net IRR Pension funds have an opportunity to follow VC leaders, driving innovation and improving returns by tapping into diverse talent. It’s time to rethink where these funds are going—there’s money on the table. Are we going to grab it? Read more of Julie’s Forbes article here: https://lnkd.in/gCMtJwz9 #PensionFunds #PrivateEquity #DiverseFounders #EmergingManagers #InclusiveInvestment #NasdaqFoundation Nasdaq Foundation

Recently I was talking with a VC Fund Manager who was planning to raise Funds from a Pension Fund. If you are looking to raise funds from Pension Funds globally, I have prepared a list of the 100 most prominent Pension Funds that would be useful.   Here are some examples of pension funds investing in venture capital (VC) funds, private equity (PE) funds, and companies directly:   Venture Capital (VC) Funds: - In 2023, the Ontario Teachers' Pension Plan (OTPP) committed $200 million to a new venture capital fund managed by Accel Partners.   - The California State Teachers' Retirement System (CalSTRS) announced a $150 million investment in a healthcare-focused venture capital fund managed by NEA (New Enterprise Associates) in 2022. NEA is known for its investments in biotechnology, healthcare, and technology companies.   Private Equity (PE) Funds: - In 2023, the Canada Pension Plan Investment Board (CPPIB) invested $500 million in a private equity fund managed by KKR & Co. - The Public Investment Corporation (PIC) of South Africa committed $300 million to a private equity fund focused on renewable energy and infrastructure investments in Africa in 2022.   Direct Investments in Companies: - In 2023, the Norwegian Government Pension Fund Global (GPFG) acquired a significant stake in Rivian Automotive, an electric vehicle manufacturer based in the United States. GPFG's investment was part of Rivian's Series H funding round, which raised $2.5 billion.   - The California Public Employees' Retirement System (CalPERS) made a direct investment in Stripe, a financial technology company, as part of Stripe's Series H funding round in 2022. CalPERS invested $100 million in the round, which valued Stripe at $95 billion.   These examples highlight how pension funds continue to deploy capital across various asset classes, including venture capital, private equity, and direct investments in companies.   To get the list, please complete BOTH Step 1 & Step 2: Step 1: Like and Comment on the post below (some people are forgetting this one, please remember to drop a comment on the post). Step 2: Drop me a DM/Inmail saying "Pension Funds". ~~~~~ ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Fazlur Shah for more content like this. #startups #entrepreneurship #venturecapital #investing

FT - UK start-ups turn to Silicon Valley to fill void left by risk-averse pension funds “[The US venture capital firms] want me to build the biggest company I can and to die trying,” explained the 45-year-old entrepreneur. Matthew Scullion is crystal clear that the turning point for the UK software company he founded was when it won the backing of two US venture capital firms. In 2018, Scale Venture Partners and Sapphire Venture led a funding round in Matillion, then a seven-year-old start-up headquartered in Manchester. UK investors contributed a small amount, but Scullion credits the injection of Silicon Valley cash and knowhow for helping propel Matillion into a select club: one of the UK’s unicorns, or private companies worth at least $1bn. “We have a wonderful life sciences industry and one of the largest pools of capital in the world with our pensions industry, but they’re parallel universes,” said Sir Jonathan Symonds, chair of FTSE 100 drugmaker GSK, who feared that future generations of retirees would be denied the financial rewards of UK innovation. But Fred Cohen, co-founder of venture capital firm Monograph Capital, said Britain also suffers from a dearth of “true risk capital and there’s not a lot of managers who are comfortable taking the risk that is required to manage that capital”. He added: “In the City of London there’s a lot of capital but it tends to be focused on low risk, low reward asset classes like gilts.” Channelling more money into private assets, including start-ups, is a central tenet of the Mansion House reforms. They include an agreement by 11 of the UK’s biggest DC pension providers to target allocating 5 per cent of their default funds, or up to £50bn, to unlisted assets by 2030." https://lnkd.in/ecVDNAgS

VENTURE CAPITAL: Did you know US Pension funds invest more in German VCs than #German institutional investors? ⭕ This insightful data point from #SiftedSummit on day 2️⃣ in #London, shows European #pensions, #familyoffices, #endowments need to get their feet wetter to speed European innovation by taking more risk! It set the stage for 1️⃣st panel: “Decrypting the VC World” Moderated by Amy Lewin, with guests Sandeep B., Prosus Ventures, Maria Rotilu, OpenSeed VC, Jörg Goschin, kFW Capital & Antigoni Lymperopoulou, Hellenic Development Bank of Investments who provided context to the complexities of VC investing. ⭕ Investors like Hellenic and kFW have a great opportunity to influence the state of innovation by supporting smaller, newer & more VCs. ⭕ Fundamental for Europe's productivity & growth. “From Founder to Funder: Navigating the World of Angel Investing” we got straight answers from Husayn Kassai CEO of exited Oxford born Onfido, Matt Robinson, Accel, avid angel & previous co-founder of GoCardless, as well as June Angelides, MBE, founder of Somos Investments. ▶️ Matt reminds founders “Equity is Forever” and therefore key to have good people/organizations as investors in your cap table. ▶️ Rightfully points out what is not well appreciated: Underwriting an investment in VC is a highly important milestone. VC make few investments throughout a funds life; its return can define fund success or not. ...Easy🤔? ▶️ Hussain highlights value VCs with operational expertise bring to the table, a trait more seen in US funds, slowly growing this side of the Atlantic. Regarding Exits💸, We heard Lisa Picardo from Pension Bee, now public, Sanjot Malhi from Northzone and Herman Narula, co-Founder of Improbable. I completely agree with Sanjot. 🔵 Exits are needed in the market. 🔵 People forget VC & PE have expiration dates ⏳ = money needs to be recycled into the system to drive innovation forward 🔵 That’s why the private for longer debate is out there unless the secondary growth trend effectively creates a new asset class. I praise companies such as PensionBee UK that IPO early. 🟣 The discipline and transparency public markets bring is important, an argument continuously heard from Brad Gerstner & Bill Gurley, 2️⃣ highly regarded, seasoned US investors. Hear their 🎙️ On secondaries … Olav Ostin, TempoCap , Jonathan Sibilia, Molten, Umerah A., Floww & Joe Schorge, Isomer Capital, gave valuable views on the 2ndaries mkt and its emergence as an asset class. 🧠 You need to take time to really understand private companies in a sector where information asymmetry is high. 🧠 Don’t focus on the discount. Focus on the growth profile of the company: This is your biggest price defense mechanism forward! ⏩ ⏩ Looking forward to \Sifted/ Summit 2️⃣ 0️⃣ 2️⃣ 5️⃣ #innovation #growthmindset #VCfunding ##venturecapital #fundmanagers #LP #GP #regulation #regulators #capitalmarkets #IPO #secondaries #assetmanagement #riskmanagement #investments

Exciting news! UK start-ups are looking to Silicon Valley for investment opportunities, as pension funds at home are playing it safe. This shift is a game-changer for the UK tech scene. Check out the full article by Financial Times to learn more about this trend and its potential impact on the industry. #UKstartups #SiliconValleyInvestment #TechIndustryTrends https://ift.tt/Pn8Mj4k

Pension Fund-based VC Ecosystem is thriving! Ever wondered how pension funds are secretly fueling the startup boom in India? Here’s how the pension fund-based venture capital (VC) ecosystem works and why it matters♨️ How it Works 💁♂️ 👉1. Pension funds diversify by investing in venture capital, aiming for higher returns beyond the usual stocks and bonds. 👉2. They don’t invest directly in startups; instead, they pour money into VC funds managed by professionals. These funds then invest in a bunch of startups. 👉3. Before committing, pension funds scrutinize these VC funds like a nosy neighbor, checking track records, strategies, and risks. 👉4. Once the deal is done, the funds drip-feed money into the VC fund over time. 👉5. The VC fund builds a portfolio of promising startups and tries to make them big. 👉6. When these startups grow and become successful, the VC fund hopes to cash in and make a profit for the pension funds. 👉7. The goal is to exit through IPOs, mergers, or sales, and then distribute the returns to the investors, including pension funds. Significance in India🚀 👉1. PE/VC investments in infrastructure and real estate grew 23% in 2023, hitting $19.6 billion across 112 deals. 👉2. The Indian VC ecosystem craves transparency, especially in exits and liquidity, to keep global investors happy. 👉3. India’s pension savings are at $280 billion, growing at 32.91% annually, and expected to reach $1 trillion by 2025. 👉4. PensionBox, India’s first digital pension app, aims to make retirement planning simple and secure for millions. Pension funds diving into the VC world aim for high returns while helping innovative startups thrive. 🟡 It’s a win-win, fueling both pensions and the startup ecosystem.🏃 #startup #funding