UK - The £1.4bn Leicestershire County Council Pension Fund has appointed Adam Street Partners to manage the fund's first foray into private equity. Leicestershire also said that it has put its hedge fund considerations on hold.
Adam Street will oversee a £50m fund-of-funds brief following a formal tender process initiated last year. Leicestershire intends to maintain a 4% exposure to private equity.
The portfolio is to be phased in over three to five years, and will be constructed around diverse geographic location, sub-class, industry and vintage year.
In addition, Leicestershire’s investment manager, Colin Pratt, said that the fund had postponed an earlier plan over a move into hedge funds.
Pratt added that hedge funds were off the agenda for at least 12 months, following an earlier presentation to Leicestershire’s trustees. The board “was not enamoured by the idea,” he said. But hedge funds would “not be dismissed out hand.”
Currently, Leicestershire’s strategic allocation is approximately 75% in equities and 25% held across bonds, cash and property.
The local authority fund is advised by Hymans Robertson.
By Madhu Kalia
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