ATP tops up PE programme with €700m

The giant Danish pension now has €8.4 billion committed to the asset class through ATP Private Equity Partners.

ATP, Denmark’s largest pension fund, has signalled a strong commitment to the asset class by allocating a further €700 million to ATP Private Equity Partners, its private equity fund investment unit.

The additional €700 million has almost doubled the size of ATP Private Equity Partners’ fifth fund, ATP PEP Fund V, bringing it up to a size of €1.5 billion. Fund V was originally launched in 2014 on €800 million and continues the investment strategy that ATP has been pursuing since it was founded in 2001: investing in global buyout funds, venture and distressed assets funds.

The latest commitment brings ATP Private Equity Partner’s assets under management to €8.4 billion.

ATP Private Equity Partners is a significant investor in the asset class and has made commitments to nearly 200 funds, according to PEI Research & Analytics. It recently backed Industrial Growth Partners V, an $800 million fund focused on the US mid-market, and Sequoia Capital’s separate Chinese growth and venture funds. It was also among the LPs in Advent International’s recently closed $13 billion eighth fund.

ATP Private Equity Partners has 17 staff in offices in Copenhagen and New York City and manages the private equity programme for the Danish public pension plan with DKK 750 billion (€100 billion; $112 billion) of assets. Half of all Danish pensioners rely solely on the state pension and ATP for their retirement income. ATP has 4.9 million members and it currently pays ATP Livslang Pension (Lifelong Pension) to 974,000 pensioners.

In separate news, the pension fund announced this morning that chief investment officer Henrik Gade Jepsen is leaving ATP to join Danske Bank. The new CIO will be 44-year-old Kasper Arndt Lorenzen, who until now has been Head of Liquid Markets in ATP’s investment division.