Over $1.5 trillion invested in hedge funds by pensions, foundations, and endowments, while private credit funds provided over $1 trillion in direct lending to American businesses of all sizes
WASHINGTON, D.C. – New Investing in Opportunity data shows that pensions, foundations, and endowments invested over $1.5 trillion in hedge funds last year to support retirements, scholarships, and charitable missions. Private credit funds provided more than $1 trillion in direct lending to help businesses of all sizes across all 50 states hire, innovate, and expand.
“Private credit and hedge funds invest trillions of dollars in the American economy. They generate returns for pensions, foundations, and endowments, and provide businesses with the capital needed to grow, innovate, and create jobs,” said Bryan Corbett, MFA President and CEO. “Private credit and hedge funds strengthen America’s public and private capital markets and drive economic growth.”
Pensions, foundations, and endowments invest in private credit and hedge funds to diversify their portfolios, manage risk, and generate reliable returns that benefit:
- Over 26 million retirees, including teachers, firefighters, and nurses.
- More than 1,500 nonprofit and charitable foundations.
- Over 600 colleges and universities.
Americans in all 50 states benefit from the returns generated from hedge fund investments:
- In Arizona, pensions invest $5.4 billion with hedge funds to support retirees.
- In North Carolina, nonprofits depend on the $13.5 billion invested in hedge funds to finance mission-critical work and research.
- In Massachusetts, colleges and universities invest $37.5 billion in hedge funds to provide scholarships and educational opportunities.
Private credit direct lending provides businesses nationwide with vital funding to hire, innovate, and grow:
- In Texas, private credit funds provided $74.9 billion to businesses of all sizes, helping owners and entrepreneurs expand their operations.
- Illinois companies used $32.9 billion in capital from private credit funds to hire and train more employees.
- Georgia businesses accessed $19.2 billion in capital from private credit funds to innovate.
MFA launched the Investing in Opportunity educational campaign in 2021 to highlight how investments made by the alternative asset management industry strengthen public and private capital markets, drive economic growth, provide capital to American businesses, and improve opportunities for everyday Americans.
Want to see how your community benefits? Visit InvestingInOpportunity.org to explore your state and learn more about how private funds Invest in Opportunity.
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