With M&A bound to slow down in the near future, limited partners are
planning for their future in various ways. Speaking at the "LPs and Their
Expectations" panel at The Deal's Private Capital Symposium, Sheryl Schwartz,
managing director of TIAA-Cref, who invests in private equity funds for her
company's huge multibillion dollar retirement fund, says she focuses in
investing in buyout funds that "will partner with people that have operational
experience so that they'll do well in a downturn." Meanwhile, David Fann,
president and CEO of Pacific Corporate Group Asset Management LLC, feels that
opportunities lie in distressed debt as well as diversifying where his company
invests. "The U.S. has exhausted PE, and we're looking at Central Europe and Asia.
There's definitely less reliance in the U.S. economy," Fann said.
"Diversification is important." With the rise of solar power and hybrid engines,
one sector that Fann mentioned liking in particular is the green technology
sector. Schwartz too emphasized diversification when it came to fund
investments. She prefers in investing in preferred distressed equity funds that
turn around companies by adding expert managers.
—Gerald Magpily
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