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US public colleges expand PE investments despite downturn

State school endowments see falling valuations as a prime opportunity to get in as public market expectations dim
‘It is tough to get good access for smaller institutions,’ said John Alexander, chief investment officer of the Clemson University Foundation

US public university endowments are increasing investments in private equity even as the underperforming asset class has weighed on their private college peers in recent years. 

Seven public university endowments told the Financial Times they were increasing allocation to PE by as much as 150 per cent over the next few years in a bid to boost long-term returns.

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