Private markets and pension funds: Moving beyond the myths
Private markets continue to attracting growing attention from pension funds seeking both diversification and long-term value. Yet questions remain about their suitability, risks, and role in driving development.
At a recent EBnet “In the Moment” webinar, industry experts unpacked these questions through a dynamic role-play discussion designed to reflect real-world decision-making between trustees, consultants, and managers.
Reframing the conversation
Monika Kraushaar, Head of Investment Advisory at RisCura, joined the discussion to share the consultant’s perspective on how retirement funds can approach private markets with both discipline and confidence.
She emphasised that Regulation 28’s expanded limits for infrastructure and private market allocations present a clear opportunity for funds that are prepared to invest responsibly.
Private market investing isn’t a passing trend – it’s part of a long–term strategy to align member outcomes with South Africa’s development needs
For Monika, the conversation goes beyond returns. “It’s about matching investment structure and liquidity with the fund’s obligations,” she explained. “When well-constructed, these strategies can complement traditional assets while supporting broader economic growth.”
Long-term value, not short-term fashion
The panel explored how private markets can address two of the most pressing challenges facing retirement funds today: sustainable returns and the need to stimulate economic development.
Monika noted that private market exposure should be built gradually, with diversification across asset classes, vintages, and geographies to manage liquidity over time.
Every player in the ecosystem – asset owners, consultants, and managers – shares responsibility for educating and collaborating to move the conversation forward.
The importance of collaboration
A consistent theme of the discussion was the need for stronger collaboration across the investment ecosystem. Monika stressed that trustees and consultants must engage openly to deepen understanding of the asset class and its associated risks.
Education and open dialogue are essential,” she said. “Our role as advisors is to help clients understand the risks, manage them effectively, and invest responsibly for long-term success.
Why this matters for pension funds
South African pension funds face dual objectives: delivering reliable financial outcomes while supporting inclusive, sustainable growth. Thoughtful private market investing can contribute to both.
RisCura’s Investment Advisory business continues to guide boards of trustees in designing portfolios that incorporate private markets where appropriate and relevant to the fund’s objectives, from assessing infrastructure opportunities to ensuring sound governance around unlisted investments.
With thoughtful structuring, private markets can enhance returns, improve diversification, and contribute to national development.
Interested in exploring private markets for your fund?
Book a session with our experts to discuss how our investment advisory services can help your fund integrate private market opportunities responsibly and effectively.
