Canada Pension Plan Investment Board has backed a deal which allowed Hermes GPE to continue managing a funds portfolio and the UK’s second-largest pension fund to reallocate capital, sister publication Secondaries Investor has learned.
UK regulatory filings from April and May show London-headquartered Hermes transferred fund interests held in at least three vehicles into a new fund named Hermes GPE Global Secondary II.
The deal, worth almost $1 billion in net asset value plus unfunded commitments, allowed Hermes to retain management fees over the fund of funds portfolio, according to three sources familiar with the matter. CPPIB backed the majority of deal, the sources said.
Ardian joined as a minority co-investor, according to two of the sources.
It is understood that BT Pension Scheme, historically Hermes’s largest investor, cashed out of the funds of funds to CPPIB and Ardian. The deal allows Hermes, on behalf of BTPS, to move away from vanilla buyout funds and focus on high-growth funds and strategies including emerging markets and emerging managers.
The fund of funds portfolio included stakes in vehicles managed by Partners Group, Rutland Partners, IK Investment Partners, EQT, BC Partners, Carlyle Group, Exponent Private Equity and Stirling Square Capital Partners.
CPPIB, Hermes, BT Pension, Ardian, Partners Group, Rutland, IK, EQT, BC Partners, Carlyle, Exponent and Stirling Square all declined to comment.
For the full story please visit Secondaries Investor.