PE drives H1 returns for ATP

Denmark’s largest pension was buoyed by both its private and public equity holdings.

ATP Group, Denmark’s largest pension fund with DKr748 billion ($120.1 billion; €100.5 billion) of net assets, has secured a DKr3 billion return on investment across its private equity portfolio for the first half of 2017.

The portfolio, which was valued at DKr34.7 as of 30 June, grew by DKr1.9 billion before tax and expenses from its fund of funds unit ATP Private Equity Partners, according to its H1 2017 results. The remainder of returns was earned through venture and direct equity investments such as Leaseplan, a Dutch fleet management and driver mobility company that ATP acquired as part of a consortium in March 2016.

ATP PEP recently committed $50 million to Apollo Investment Fund IX, a $25 billion 2017-vintage targeting North America and Western Europe, and $30 million to VMG Partners IV, a $525 million fund that will target North America, according to Private Equity International data. The fund of funds, which primarily targets international vehicles, is committed to 107 funds in total.

“While [the current low interest rates are] positive from a growth perspective, investors will be faced with the challenge of continuing to generate the same high returns in the quarters and years ahead,” Christian Hyldahl, chief executive of ATP, said.

“However, we still have leeway to take return-generating risks, but we will do so based on an extremely disciplined approach to both portfolio construction and risk management. This is a way of ensuring that we create satisfactory results in the long term, despite the fact we are operating in an environment characterised by low and uncertain returns.”

ATP achieved a 14.6 percent investment return across its entire portfolio in H1. The largest positive return came from listed Danish equities, which delivered DKr4.1 billion in the period.