AP7, Stockholm, will issue RFIs within the next few weeks for two new clean-tech private equity mandates totaling 2% of the funds assets, said Richard Grottheim, executive vice president of the 88 billion Swedish kroner ($13.6 billion) fund. A separate general private equity portfolio will also be put out for bid.
The clean-tech mandates will be split equally between global and Nordic private equity funds of funds. Funding will come from rebalancing the existing private equity portfolio and possibly reducing a passive investment that tracks the FTSE ET50, an environmental index, Mr. Grottheim said.
In addition, AP7 will retender its current private equity portfolio as part of a regular five-year procedural review. The general private equity strategy now accounts for about 6% of the overall portfolio and is managed by Hamilton Lane, with 50% of the private equity portfolio; HarbourVest Partners, with about 30%; and LGT Capital Partners, 20%. Were very happy with the performance of all three managers, Mr. Grottheim added.
Managers for all three portfolios are scheduled to be appointed in the second quarter. AP7s overall private equity portfolio will increase to 10% of total assets in 2009 from the current 8%, Mr. Grottheim added. Of that amount, general private equity will account for seven percentage points and clean-tech private equity, three points.