ATP, the Danish pension fund manager, is planning to launch the ATP Private Equity Managers fund of funds (APEM) with a target to commit E4.5bn over the next three years. The fund's commitment of 10% of total assets makes it one of Europe's largest pension investors in private equity. ATP had previously invested around 1 per cent of its funds in the asset class.
APEM hopes to create a concentrated portfolio of no more than 75 managers, with APEM being among the top ten investors in each fund. 65 per cent of the capital will be invested in buyout funds, with the remainder dedicated to venture capital. Investments will be split equally between the US and Europe, with 10 per cent invested in funds around the world.
Investments of between E10-75m will be made in private equity funds on a global basis from early stage to venture capital, including buyouts and special situations. APEM will also invest between E5-25m in deals led by other private equity funds primarily in Europe. In addition, the fund will undertake direct investments to entrepreneurs, public to private deals and spin-offs in Scandinavia of between E3-15m.
The APEM team will be led by Jens Bisgaard-Frantzen, managing director of private equity at ATP. The fund has already committed funds to Nordic Mezzanine, Goldman Sachs, Danske Private Equity and Polaris. Commenting on the proposals, Bisgaard-Frantzen said: “We believe there is a link between a thorough due diligence process and out-performance. We have identified that private equity strategies based on an operational value added approach with respect to the portfolio companies tend to perform best. As a result our key focus will be on delivering superior and distinct value innovation.”
ATP is an independent, self-supporting institution which invests pension contributions on behalf of employees and employers. ATP operates independently from the state, and ownership of all ATP assets is vested in its members.