Per Olofsson, head of alternative investments at the Swedish pension fund, said subscription credit lines should be used for capital efficiency and not to artificially boost IRRs.
Law firm Dechert wrote in its latest private equity newsletter that both investors and regulators are beginning to focus more on disclosure surrounding the use of lines of credit.
A $6bn fund targeting financial services closed last year will downsize to $4.5bn in commitments. TPG is telling investors an influx of US government rescue cash to the sector has diminished opportunities.