Two Dutch pension funds — ABP, Heerlen, and PGGM, Zeist, will commit €250 million ($336.39 million) each to private equity investments targeting clean technology and renewable energy, PGGM spokeswoman Ellen Habermehl confirmed. AlpInvest Partners — a private equity firm with €10.5 billion in assets under management that is owned by both of the funds — will invest the commitment in unlisted European and U.S. companies from now through 2009, with a possible extension to 2010.
The €83 billion PGGM will fund its commitment by reducing its exposure to equities, said Ms. Habermehl, who declined to provide further information. Thijs Steger, spokesman for the €209 billion ABP, said funding would come from cash.
“We expect that they will provide good returns in the next few decades,” Roderick Munsters, director of ABP Asset Management, said in a news release. “These investments are an excellent fit with our policy of investing while taking account of sustainability criteria such as the environment, social conditions and good management. We also expect this will enable us to reduce the investment risk.”