Citigroup surveyed about 50 pension managers with a combined $1 trillion under management and found that they intend to raise their allocation to alternative investments to an average of nearly 20 percent in two and a half years from 14 percent today. The New York Times notes that would mean another $1.2 trillion for private equity and hedge funds. We've noted before that the desire by pensions to gain non-correlated (with the stock market) exposure will keep private equity funds flush with cash. The recent overseas deals with sovereign funds are mere gravy on the domestic cake. Now that the tax hike controversy has been settled, we may see more funds go public after all. Wow. How things change.  

For more:
- here's the New York Times article