A growing number of global pension funds are scaling back or pausing investments in US private markets, as geopolitical tensions and erratic trade policies under President Donald Trump spark concerns about capital stability and regulatory risk, according to a report by the Financial Times.
The shift comes as the US private capital sector continues to grapple with tightening liquidity and a slowdown in fundraising, now compounded by mounting investor unease over Washington’s increasingly unpredictable stance on international trade and foreign relations.
One of the most significant developments is a strategic reassessment by the Canada Pension Plan Investment Board (CPPIB), which manages CAD699bn ($504bn) in assets. CPPIB is reviewing its exposure to the US, where it had nearly $50bn allocated to private equity funds as of September, including capital committed to Blackstone, Carlyle, and Silver Lake, according to FT analysis.
Meanwhile, a major Danish pension fund has paused new investments in US-based private equity altogether, citing concerns about general instability and recent rhetoric regarding Greenland, a semi-autonomous Danish territory.
Another Danish institution, AkademikerPension, which manages DKr150bn (€20bn), is also reconsidering its US exposure. CIO Anders Schelde noted that “pretty fundamental changes” to the portfolio are being explored, including the potential for “significantly less strategic exposure to US assets within a half year or so.”
These shifts are being seen as a potential blow to the US private capital ecosystem, which has long relied on international institutional capital to fuel fundraises and support deal activity. A pullback from major sovereign institutions could further exacerbate the sector’s fundraising headwinds.
Still, not all global investors are retreating. Caisse de dépôt et placement du Québec (CDPQ), which manages CAD473bn in assets, said it plans to maintain its current allocation, with roughly half of its private equity portfolio still invested in the US. “It’s tough to invest everywhere these days,” said Martin Longchamps, head of private equity and credit at CDPQ, acknowledging the broader volatility across global markets.
