Institutional investors including pension funds (15% allocation), college endowments (30% allocation), and elite college endowments (40% allocation) are massively overallocated to private equity relative to its actual market size, and this overallocation is unjustified given that PE companies are the smallest, lowest-margin, lowest-quality businesses with the highest debt loads.

normativepending

Speaker

Dan Rasmussen

Evidence Quote

I should have about 3.6% weight in private markets. And but if I have a 15% weight or a 30% weight or god forbid a 40% weight, I am massively massively overallocated [12:28]

Source

The Bubble No One Can Sell | Dan Rasmussen on the Private Equity TrapExcess Returns
Created: 8/11/2026, 8:01:35 AM

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