New data also shows private credit funds provided over $1 trillion to American businesses of all sizes — 40% increase from 2022
WASHINGTON, D.C. – Pensions, foundations, and endowments in all 50 states invested nearly $1.3 trillion with hedge funds, according to new 2023 data from MFA’s educational campaign, Investing in Opportunity. The data also shows that private credit funds provided American businesses of all sizes with more than $1 trillion in capital in 2023 — an increase of 40% compared to 2022. Visitors to InvestingInOpportunity.org can explore how Americans in their state benefit from returns generated by hedge funds and private credit.
“The returns generated by hedge funds and private credit funds benefit everyday Americans across the country,” said Bryan Corbett, President & CEO of MFA. “Pensions, foundations, and endowments use the returns generated by hedge funds and private credit funds to provide comfortable retirements, scholarships, and community benefits. Private credit funds also provide $1 trillion in capital to U.S. companies of all sizes in every state, enabling them to hire more workers, develop new technologies, and expand into new markets.”
New data from 2023 shows investments in private funds support:
- The retirement of 26 million teachers, fire fighters, nurses, and other hardworking Americans
- Scholarships, reduced tuition costs, and campus infrastructure at over 300 colleges and universities
- The work of more than 1,000 nonprofits and charitable foundations that improves lives and supports communities.
The Investing in Opportunity data shows how Americans in each state benefit from private fund investments:
- In New York, nonprofits and foundations use the returns generated by the $63.2 billion invested with hedge funds to carry out lifechanging missions across the Empire State.
- Pensions in Georgia invest $31.3 billion with hedge funds to help provide retirement security and peace of mind for first responders, teachers, and other workers.
- Colleges across California depend on the returns from their $15 billion invested with hedge funds to provide scholarships and improve their campuses.
New data from last year also shows how private credit drives economic growth across the country:
- In Texas, private credit funds provided $82.3 billion to businesses of all sizes, helping owners and entrepreneurs expand their operations.
- Illinois companies used $31.3 billion in capital from private credit funds to hire and train more employees.
- Iowa businesses accessed $13.1 billion in capital from private credit funds to innovate.
Launched in 2021, MFA’s Investing in Opportunity educational campaign seeks to highlights the positive impact investments made by alternative asset managers have on markets, the economy, American businesses, and everyday lives.
Want to see how your community benefits? Visit InvestingInOpportunity.org to explore your state and learn more about how hedge funds continue to Invest in Opportunity.
About the global alternative asset management industry
The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of $5.5 trillion (Q3 2023). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.
About MFA
Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 member fund managers, including traditional hedge funds, credit funds, and crossover funds, that collectively manage over $3.2 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.
