UK's £1.4bn Leicestershire County Council Pension Fund is tendering a new £50m-£75m private equity portfolio.
According to Colin Pratt, investment manager of the local authority fund, the phasing period will be 3-5 years depending on the amount of the final investment.
He added that no decision had been taken as to whether the fund will take the active manager or fund-of-funds route, although Pratt does not anticipate more than two managers being employed:
“If we can find an investment manager who has the right vehicles launched at the right time on a periodic basis then it will probably be one manager. It really depends on who can offer what and that's what we’re trying to find out at this stage”, he said.
The vast majority of assets into the portfolio are expected from new money. However, Pratt added that some cash will be transferred over time from quoted UK and overseas equities as the benchmark is altered, although this amount is expected to be “minimal”.
Pratt added that other alternative investments were a future consideration, but were not an imminent interest.
Deadline for applications is 20 July. A decision is expected during the first quarter, 2002.
The fund’s current strategic allocation is 75% in equities and 25% spread across bonds, cash and property.
The Leicester-based fund is advised by Hymans Robertson.
By Madhu Kalia
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