The £16bn Post Office pension fund in the UK has expanded its allocation to private equity by awarding £450m in new mandates.
Having reviewed a number of different strategies, Post Office Pensions Trustees Limited (POPTL) decided that it should significantly increase its private equity allocation through the creation of three distinct fund-of-funds portfolios.
California-based Pathway Capital Management and Pennsylvania-based Hamilton Lane Advisors have both been awarded global mandates and London-based Pantheon Ventures has been awarded a European-centric mandate. Each mandate is for £100m.
Part of this new allocation has also been awarded to incumbent manager Hermes, which see its allocation increase by £150m from £100m to £250m.
Although the fund has made no allocation to hedge funds, Gerry Degaute, director of finance at POPTL told International Pensions News that the fund will re-examine this asset class in the next scheduled review in January 2003.
London-based specialist advisors Campbell Lutyens was appointed to guide the private equity commitment in January.
The Post Office is now operated under the holding company Consignia plc.
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