The £28 billion ($43 billion) Universities Superannuation Scheme, Liverpool, England, acquired a $135 million stake in Neuberger Berman Secondary Opportunities Fund II from the Lehman Brothers estate, according to Geoffrey Geiger, portfolio manager for co-investments within the pension fund's private equity and infrastructure division.
It is the fund's first dedicated secondary private equity investment.
Officials at USS have about 10% of total assets invested in alternatives but are aiming to double that amount. About £3 billion is committed or invested in private equity so far, including the Neuberger Berman transaction. Other alternatives include hedge funds, commodities and infrastructure.
USS now becomes the largest investor in the $1.77 billion secondary private equity fund.
The deal gave USS “immediate exposure to the secondary market at attractive terms,” Mr. Geiger added. “Furthermore, we've got a highly experienced team with a good track record behind it.”
USS expanded its private equity team to five so far this year, with plans to add three more professionals later this year, Mr. Geiger said.