AP7, Stockholm, is searching for three or four managers to run 10 billion Swedish kronor ($1.2 billion) in segregated private equity funds of funds.
The $32 billion pension fund hired bfinance to assist in the search.
The commitments, to be made in 2016 and 2017, are “conditional upon the development of AP7’s assets under management and assumptions of growth as well as stress testing and the regulatory framework,” said an announcement on European procurement website Tenders Electronic Daily.
AP7 maintains a maximum 10% allocation to alternatives, which is principally private equity assets, said Richard Tyszkiewicz, senior director at bfinance, in an e-mail. Mr. Tyszkiewicz said the pension fund estimates new private equity commitments of 10 billion Swedish kronor for the coming two years. That allocation is based on expected inflows as well as the projected growth of the overall investment portfolio, he added.
AP7 has 3% of its equities investments allocated to private equity. Its equity portfolio had 262.5 billion Swedish kronor of assets as of Nov. 30, according to its website.
Contracts will run for an initial three-year period, with two optional two-year extensions.
Proposals are due Jan. 20. Further information is available on TED.
Mr. Tyszkiewicz said AP7 hopes to select managers by June.
Executives at AP7 referred questions to bfinance.