Institutional investor

An organization investing pooled or owned capital, such as a pension fund, endowment, insurer or sovereign fund. Institutional status does not itself establish size, patience, liquidity capacity or eligibility for every investment.

Institutional investor in round numbers

Hypothetical: a pension fund commits US$200m to a private-equity fund. Capital calls and distributions occur over the fund’s life under its terms; the commitment is not necessarily paid entirely upfront or returned in one payment after ten years. Distribution amounts and timing are uncertain, and capital recovery is not guaranteed.

The pools
  • Pension funds
  • endowments
  • insurers
  • sovereign funds

LP · Retail investor · Committed capital & capital calls · Blind-pool risk · Investment committee · Sovereign wealth fund · All of the glossary