Dutch pension fund manager PGGM, a strong advocate for improving transparency over fees in the private equity industry, has promoted its head of infrastructure, Frank Roeters van Lennep, to private markets chief investment officer.
As CIO at the asset management arm, PGGM Investments, Van Lennep replaces Ruulke Bagijn, who left PGGM in May to take up a newly created role as global head of real assets private equity at the €65 billion AXA Investment Managers – Real Assets, a real estate portfolio and asset manager based in Paris.
Van Lennep is stepping into the shoes of an influential industry reformer. Bagijn, who was named PEI’s Private Equity Game Changer of the Year 2015, was recognised for her efforts to hold the private equity industry to account over issues such as remuneration and its link to performance.
Indeed, last August, PGGM warned that by 2020, it would stop investing in private equity fund managers that do not fully disclose their fees. PGGM also set out new guidelines for ‘acceptable remuneration’ stating that asset managers “must be transparent regarding their pay and remuneration structures”; performance fees “should only apply in the event of above-average performance that is agreed in advance”; and “only basic remuneration should be paid for the costs and pay of the management of the asset manager”.
Van Lennep, who started at PGGM as head of infrastructure on 1 January 2015, will continue to hold the position until a successor is found, PGGM said.
Before joining PGGM, van Lennep spent 14 years at KPMG Corporate Finance, where he was a partner; at the investment bank, he was responsible for debt advisory and infrastructure activities.
Van Lennep studied monetary economics at Erasmus University Rotterdam and went on to work in banking supervision at the Dutch central bank. After completing his MBA at INSEAD in Fontainebleau, France, he joined the infrastructure-focused National Investment Bank, headquartered in Curaçao, the Dutch Caribbean; while at NIBanc, he helped set up its mortgage business. He then spent several years as head of structured finance at ABP Investment, the asset management unit of Dutch pension fund ABP.
Zeist-based PGGM is structured as a cooperative with about 700,000 members. It serves institutional clients, offering asset management, pension fund management, policy advice and management support. As of 30 June, it had €200.2 billion in assets under management, making it the second largest pension fund in the Netherlands after ABP, which had €372 billion in AUM as of the end of June.