Capital Dynamics to lead Thai pension’s global private equity expansion

The Government Pension Fund of Thailand has selected the Swiss private equity advisory firm to help implement a $330 million global private equity expansion plan.

Switzerland-based private equity firm Capital Dynamics will oversee the Government Pension Fund of Thailand’s first private equity investment strategy outside of Thailand.

The international private equity programme has been allocated 3 percent of the pension’s net asset value, currently worth approximately $330 million, which will be invested over a period of three years. GPF is a long standing domestic private equity investor and has more than $10 billion in assets.

John Gripton, managing director at Capital Dynamics, said in a statement that the “size of the allocation as a first time investor in [non-domestic] private equity, demonstrates a serious commitment to the asset class”.

GPF is the first Thai pension fund to expand its private equity exposure internationally. It is the largest pension fund in Thailand, and was established in 1997 by the Thai government to complement a benefit scheme masterminded by the Thai Finance Ministry.

Capital Dynamics was established in 1988, and manages more than $20 billion of private equity capital. It is headquartered in Switzerland but also has offices in New York, San Francisco, London, Birmingham, Hong Kong and Munich. Last October it was awarded a $150 million discretionary mandate by one of the UK’s largest retirement funds, West Midlands Pension Fund.

Katharina Lichtner, a managing director and head of research at Capital Dynamic, told PEO that the firm was selected in a tender process that involved approximately 10 private equity asset managers. It was chosen because of its global reach and its outstanding investment and portfolio and risk management expertise, she said.