Partners Group AG has a client for its new alternative investments funds for the defined contribution market a defined benefit plan.
Executives at the Baar-Zug, Switzerland-based money manager declined to identify the new client exactly, except to say it is a large, non-profit health-care system in the Midwest. Officials from the $2.5 billion pension fund recently made a $50 million commitment to Partners Group's DC plan investment fund option, said Jenny Blinch, vice president, public relations at Partners Group.
Launched in August, the fund is designed to offer private equity and private market investments as part of a suite of target-date funds.
Ms. Blinch noted the small irony of Partners Group's first client in its flagship defined contribution plan fund being a defined benefit plan.
There are already many investors evaluating the fund for their target-date fund portfolios, which is where we expect most (clients) to use it, said Robert Collins, managing director and co-head of U.S. investment solutions Americas, in a written statement to Pensions & Investments. The first client ... doesn't actually have a (target-date fund). They decided to use the fund in their DB plan, where they also saw a benefit.