SWIP to commit £100m to secondary, distress-focused funds

Scottish Widow Investment Partnership will invest up to 50% of its private equity allocation into funds that invest in the secondary market and make turnaround and distressed investments, according to investment director William Gilmore.

The Scottish Widow Investment Partnership (SWIP), one of the UK and Europe’s largest fund managers with £83 billion under management, will invest “at least £100 million” (€106 million; $145 million) this year into distressed, turnaround and secondary-focused private equity funds, investment director William Gilmore said at a conference in London yesterday.

Gilmore said that the secondary buyout market could “fill the void” left by a decline in primary buyout deals, and predicted that secondary assets could provide “double digit” returns of up to 20 percent, according to a Reuters report. He also said there would be “very little” fundraising in 2009.

SWIP has a €300 million private equity allocation, and typically commits to buyout and venture capital funds, according to sister data service Private Equity Connect. It has invested £1.5 billion into private equity in the last eight years. Gilmore’s team currently manages commitments in over 60 private equity funds.

SWIP, whose ultimate parent is Lloyds Banking Group, invests across equities, property, bonds and cash.