Private equity performs best for Keva in 2016

The Finnish pension fund saw its €3.1bn PE portfolio return 14.6%.

Private equity was the best performing asset class for Finnish pension fund Keva in 2016, its annual report shows.

The €49.4 billion fund, which is responsible for the pension assets of public sector employees in Finland, said its €3.1 billion worth of private equity investments returned 14.6 percent on capital employed last year. A spokesman said the methodology used slightly downgrades the actual IRR return of the fund's private equity exposure, which he said was more than 15 percent.

The fund is invested in more than 50 private equity funds with its largest allocation to a single manager a €138 million allocation to KCEAF I, a programme managed by Swiss alternatives group LGT Capital Partners. Its next largest allocation is a €110 million commitment to Advent International VII, followed by €97 million in financial services and energy fund Pine Brook II and a €93 billion commitment to Warburg Pincus XI.

The fund also has a €284 million commitment to a vehicle it manages in-house that is exposed to a range of underlying funds, a spokesman told PEI. He declined to disclose the names of underlying managers.

The next best performer was unlisted equities at 14.2 percent. Listed equities delivered an 8.8 percent return.