Finland's Local Government Pensions Institution, the Finnish pension manager, has announced plans to gain exposure to the US venture capital sector, hiring Grove Street Advisors to set up a $125 million (€97 million) venture capital portfolio in the US.
The Finnish institution, which oversees more than €14 billion in investments for more than 900 member organisations, has entered into a commitment with Grove Street Advisors to make venture capital investments among a few select US funds. Details of the funds for investment have not been disclosed. “We will provide access to a premier group of high-quality venture funds that meet the Institution's criteria for safety, security and return on investment,” said Catherine Crockett, a founder and general partner at Grove Street.
The Institution has allocated more than €875 million to alternative investments in Europe to date, and is planning to increase its exposure to the US venture capital market in the coming years.
Kimmo Lehto, associate director of Finland's Local Government Pensions Institution said it saw a “unique opportunity” to build a US portfolio benefiting from Grove Street’s “access to some of the best venture capital funds in America and their highly refined due diligence process.”
Grove Street Advisors was founded in 1998 as an investment advisory firm to build separate account private equity fund-of-funds. The firm has more than $3 billion currently under management from a number of clients, including the California Public Employees' Retirement System (CalPERS), the Oregon Public Employees' Retirement Fund (OPERF) and NIB Capital, for which it manages a $100 million vehicle to invest in new and emerging US venture funds. The firm says it has relationships with more than 80 of the top performing private equity fund managers in the US and Europe.