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In fact, virtually all of our drawdown funds we've launched in our history, have been profitable for our investors. Our performance has helped secure retirees' pensions, fund students educations, pay healthcare benefits, and protect and grow the savings of individual investors. billion or $0.94
In addition to insurance clients, pensionfunds and other LPs see the value we're creating in private credit, and there's been a strong response to our product offerings. Fee-related earnings increased 12% year over year to $1.2 billion or $0.95 So if we do these with bank partners, we can go through them in detail.
In private credit, tightening credit conditions resulting from a handful of bank failures and rescues in the United States have opened up opportunities for non-bank players like pensionfunds, he said. Managementfees increased by $165 million, due to an increase in average assets managed by external fundmanagers.
Pensionfunds are calling for more transparency from privateequityfirms, seeking clearer and standardised reporting on fees and returns, in new guidelines published by the Institutional Limited Partners Association (ILPA), according to a report by the Wall Street Journal.
The decision to put a senior government official on the board of the arm’s-length pensionfundmanager raises questions about AIMCo’s continued independence, and whether the move opens the door to the government to exert greater political influence or to steer the pensionfundmanager toward government priorities.
The pensionfunds 2024 returns fell short of its internal benchmark of 12.9 per cent, mostly because privateequity returns lagged the stock markets performance, and real estate assets such as office buildings and shopping malls continued to struggle. In 2024, the pensionfunds publicly-traded stocks gained 23.2
Currently, privateequity represents less than 1% of defined contribution plan assets, yet firms such as Apollo Global Management, Blackstone, and KKR see significant growth potential. While ETFs typically charge around 0.51% in fees, privateequityfirms often collect 2% in managementfees and 20% of profits.
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