SWIB increases private debt target allocation

The US pension's private debt allocation sits at 9%.

Institution: State of Wisconsin Investment Board
Headquarters: Madison, United States
AUM: $126.35 billion
Allocation to alternatives: 17%

State of Wisconsin Investment Board recommended an increase for its target allocation for private debt in 2021, according to board materials from its October 2020 meeting.

The $126 billion pension’s target allocation for the asset class will increase from 9 percent to 11 percent. It expects to hit its target by the end of next year, depending on market performance, the document shows. SWIB’s long-term invested return for private equity/debt sits at 10.2 percent, with its 10-year expected return at 9.9 percent.

Private equity/debt currently makes up 9 percent of SWIB’s total portfolio.

As illustrated below, SWIB focuses on debt, growth equity and buyout investments.

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