Pension Protection Fund, London, hired Pramerica Investment Management to run a direct lending portfolio.
The £22.6 billion ($35.5 billion) pension fund is targeting a £400 million investment over the next two years, although depending on market conditions, this could take longer, confirmed the PPF. The PPF intends to invest in funds that lend mainly to companies with a U.K. presence.
Further details on how the allocation will be funded were not available by press time.
Documents filed with European procurement website Tenders Electronic Daily said the manager, its parent or affiliate, must co-invest alongside the PPF in the individual lending transactions.
The hire followed a search that was launched in January 2014.