AP Fonden 1, Stockholm, hired LGT Capital Partners, WP Global Partners and Pacific Corporate Group to each run private equity portfolios of €50 million ($188 million), according to spokeswoman Nadine Viel Lamare.
Officials of the 187.3 billion Swedish kronor ($25.3 billion) pension fund decided to invest as much as €300 million a year in private equity strategies as a diversification tool. Funding will be taken "proportionally from the rest of the portfolio" and no managers will be terminated, Ms Lamare said. Its current asset allocation is 57% equities, 40% fixed income and 3% alternative assets, largely comprising direct and private equity-related domestic real estate investments.
LGT Capital will invest primarily in European small-cap to midcap buyout funds, and WP Global will manage U.S. small-cap to midcap buyout funds. PCG will invest in large U.S. or European buyout funds, Ms. Lamare said.
Towers Perrin advised.