FRANCE - The €31.3bn Fonds de Reserve pour les Retraites (FRR) has awarded fund of funds mandates worth a total of €1.35bn to three private equity managers.
The investments, which completes the FRR’s €1.5bn first foray into private equity, follow on from a €150m fund of funds mandate awarded to AXA Private Equity Europe in December 2006, for investment in Europe and North America.
The allocations are as follows: €550m to Pantheon Ventures for a diversified European private equity mandate; €300m to Access Capital Partners for a small and mid cap European private equity mandate; and €500m to Lehman Brothers International Europe for a North American private equity mandate.
A statement from the FRR said: “The objectives of this first private equity programme are to increase, from a financial standpoint, FRR’s long term return and the diversification of its portfolio, while contributing positively to the development and innovation of companies, primarily small and mid-size enterprises, in the nonquoted sector.”
Among the many stipulations placed by the FRR on the selected managers was that they should not “invest in funds engaging in hostile takeovers of target companies or investing in countries listed by GAFI as not observing its money laundering rules and procedures”.
Likewise, the FRR asked the managers to include, as part of their review of funds, “an assessment of the overall adequacy of their socially responsible investment principles compared with those of FRR”.
In July last year, the FRR announced plans to allocate 10% of its assets to alternatives, including commodities, private equity, infrastructure and real estate, in a bid for diversification.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.