Denmark’s ATP PEP to close US office after mandate shift

The fund of funds arm of the country's largest pension will reduce its number of GP partnerships after holding a final close on €800m on its Fund VI.

ATP Private Equity Partners, the fund of funds arm of Denmark’s largest pension, is planning to close its New York office after tightening the investment mandate for its latest fund.

The fund of funds unit will close its New York office within the next six months and offer its five US staff members the opportunity to relocate to Denmark, Torben Vangstrup, managing partner of ATP PEP said.

ATP PEP held a final close on €800 million for its sixth fund, ATP PEP VI, this week. The fund’s mandate will differ from its predecessors as the vehicle will limit its scope to North America and Europe, no longer invest in venture capital and seek fewer, larger fund commitments, Vangstrup, told Private Equity International.

The changes are intended to reduce complexity and costs, as well as helping pension fund ATP ensure that its general partners’ ESG and tax matters comply with its policies, according to a statement.

“We’re trying to take down the number of active GPs in our portfolio and allocate more to the selected ones,” Vangstrup said. Fund VI will also target a greater number of co-investment opportunities.

The New York office opened in 2007 and was the unit’s sole overseas office.

Fund VI is expected to make 11 to 14 commitments of around €50 million-€75 million, Vangstrup noted. This compares with the 46 fund commitments made from Fund V, an €800 million 2014-vintage that received an additional €700 million top-up from ATP in 2016, according to ATP PEP’s website.

ATP PEP manages more than €9.3 billion on behalf of ATP. The Danish pension posted a 19 percent decline in its private equity returns for 2017 following a bumper year for ATP’s private equity portfolio the previous year, PEI reported on Thursday.