Hedge funds and private credit work for everyday Americans
Pensions, nonprofits, universities, and businesses across the United States benefit from hedge fund and private credit investments. These investments provide long-term capital for businesses, and portfolio diversification that helps institutions deliver benefits that reach millions of Americans.
Pensions
Pensions invest approximately $940 billion in hedge funds as part of diversified portfolios designed to generate steady, long-term returns. These returns help pension systems manage risk and foster secure retirements for more than 26 million workers—including teachers, firefighters, police officers and other public servants.
Businesses
Private credit provides over $1 trillion in financing to American businesses of all sizes across industries and regions. This capital is used to hire, train, purchase equipment, expand facilities, and research new technologies and products.
Private credit can be particularly important during periods of economic stress, like COVID-19, by continuing to provide credit when other financing is constrained. This helps businesses maintain operations and continue investing despite economic headwinds.
Foundations and nonprofits
Nonprofit organizations and charitable foundations invest approximately $510 billion in hedge funds to support their missions. Investment income helps fund research, community programs, and services that benefit local neighborhoods throughout the country. These returns allow nonprofits to plan and operate over long time horizons while supporting ongoing charity work.
Colleges and Universities
Colleges and universities invest approximately $111 billion in hedge funds as part of their endowment strategies. These investments help support scholarships, academic programs, research initiatives, and operating expenses.
Endowment income plays a critical role in reducing tuition costs, expanding educational access, and supporting students from a wide range of backgrounds.
How does your state benefit?
Explore how hedge fund investments support institutions and communities in your state.
