USS has up to £1bn for private equity

The Universities Superannuation Scheme is also growing its co-investment programme, having made six private equity co-investments in 2010 totaling about £120m.

The Universities Superannuation Scheme (USS), the second-largest private sector pension scheme in UK, expects to commit between £750 million (€856 million; $1.2 billion) and £1 billion to private equity in 2011, a spokesperson for the firm told PEI.

USS currently has close to £5 billion of commitments to private equity funds, and its private equity portfolio is just under 50 percent invested.

The pension is also growing its co-investment programme, having made six private equity co-investments in 2010 totaling about £120 million. The USS team expects these numbers to grow again in 2011, the spokesperson said.

Funds the pension has previously invested in include Advent International’s sixth global private equity fund, Warburg Pincus Fund X and Pantheon International Participations, the London-listed fund of funds managed by Pantheon. 

USS’s alternative assets programme was launched in 2006 with an overall target allocation to alternatives of 20 percent and a strategic target for private equity of 8 percent to 10 percent.

The pension currently has roughly £32 billion in assets under management.