Hampshire County Council Pension Fund, Winchester, England, selected J.P. Morgan Alternative Asset Management to manage a £325 million ($419 million) private debt allocation, according to a notice on European procurement website Tenders Electronic Daily.
The manager will provide a segregated fund of private debt to deliver risk-adjusted returns in a customized mandate, an "effectively bespoke fund of funds," the notice said.
The £6.6 billion local authority pension fund has a strategic allocation to private debt of 5%, which was a new addition to its investment strategy in 2018. The fund seeks a target return of U.K. 3-month LIBOR plus 4% annually net of fees. Fund returns are expected to be generated without the use of leverage at the portfolio level.
The contract is for two years, but could be extended twice — until March 31, 2025. The RFP was issued in September.
MJ Hudson Investment Advisors assisted with the search.
A spokesman could not be reached to provide additional details.