Pantheon, a UK-based fund of funds, has secured a €100 million from Finnish State Pension Fund Valtion Eläkerahasto (VER) to be used across the firm’s primary private equity buyout and growth funds in Asia and other emerging markets. The cash will be spent over the next three to four years, according to a statement.
VER launched a comprehensive and competitive tender process during 2013. “This is the first time we elected to choose a manager for a separate account. As a result of the public tender, Pantheon was selected to manage a customised emerging market private equity programme. We are very satisfied with the result because of Pantheon’s investment expertise and reach, long-standing presence in Asia and the emerging markets and its dedication to responsible investment,” Maarit Säynevirta, responsible for alternative investments at VER, said in the statement.
Pantheon was among 15 candidates of which four went into the final round, according to a source familiar with the process. Pantheon declined to comment beyond the statement.
Pantheon invests on behalf of over 400 institutional investors, including public and private pension plans, insurance companies, endowments and foundations. It has customised separate account programmes, regional primary fund programmes, secondaries, co-investment and infrastructure programmes. As at June 30, 2014, Pantheon had over $32.2 billion assets under management.
Finnish state uses VER to prepare for the financing of future pension liabilities and the balancing of pension costs. At the end of September 2014, the market value of VER's investment portfolio was €17.4 billion of which 9.1 per cent was invested in alternative investments. Allocation to private equity investments was 1.4 percent.