Key Takeaways
- • BT Pension Scheme, one of the UK's largest occupational pension schemes, awarded a $1 billion private equity mandate to Federated Hermes, Inc., named Horizon III.
- • The mandate will be managed by Hermes GPE LLP, a wholly owned Federated Hermes subsidiary, and invested over three years through a 50/50 funds and direct co-investment model.
- • BT Pension previously gave Federated Hermes mandates of $850 million in 2015 and $750 million in 2018, according to BTPS communications head Amy Mankelow.
- • Hermes GPE has invested more than $11 billion across nearly 300 funds and more than 260 co-investments.
- • Federated Hermes reports $631.1 billion in assets under management across more than 11,000 institutions and intermediaries.
Summary
BT Pension Scheme, one of the UK's largest occupational pension schemes, has awarded a $1 billion private equity mandate to Federated Hermes, Inc. The mandate, called Horizon III, will be managed by Hermes GPE LLP, a private equity firm that is a wholly owned subsidiary of Federated Hermes. It will be invested over three years through a 50/50 funds and direct co-investment model.
The award reflects a continuing relationship between the two parties. According to Amy Mankelow, head of communications and external relations for BTPS, the scheme made an $850 million mandate to the firm in 2015, roughly $1 billion in today's U.S. dollars, and a $750 million mandate in 2018, roughly $927 million today. She described a "long-standing relationship with Federated Hermes across private markets." BT Pension had 57 billion pounds (about $70 billion U.S.) in assets as of June 30, 2021, according to the article.
Hermes GPE has invested more than $11 billion across nearly 300 funds and more than 260 co-investments. Its thematic strategy seeks risk-adjusted returns by targeting four trends: the net zero economy, accelerating technological innovation, demographic and societal change, and the global center of gravity shift.
In a statement, Morten Nilsson, CEO of BT Pension Scheme, said prior mandates "have delivered consistent, sustainable returns for the Scheme throughout market cycles" and that the new award demonstrates the scheme's "continued commitment to this asset class with investments that meet our long-term sustainability goals." J. Christopher Donahue, president and CEO of Federated Hermes, said the investment reflects "continued confidence in Federated Homes to deliver its investment objectives in a very competitive global private equity market."
Federated Hermes has $631.1 billion in assets under management. Beyond private markets, it offers equity, fixed income, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries globally.
The award reflects a continuing relationship between the two parties. According to Amy Mankelow, head of communications and external relations for BTPS, the scheme made an $850 million mandate to the firm in 2015, roughly $1 billion in today's U.S. dollars, and a $750 million mandate in 2018, roughly $927 million today. She described a "long-standing relationship with Federated Hermes across private markets." BT Pension had 57 billion pounds (about $70 billion U.S.) in assets as of June 30, 2021, according to the article.
Hermes GPE has invested more than $11 billion across nearly 300 funds and more than 260 co-investments. Its thematic strategy seeks risk-adjusted returns by targeting four trends: the net zero economy, accelerating technological innovation, demographic and societal change, and the global center of gravity shift.
In a statement, Morten Nilsson, CEO of BT Pension Scheme, said prior mandates "have delivered consistent, sustainable returns for the Scheme throughout market cycles" and that the new award demonstrates the scheme's "continued commitment to this asset class with investments that meet our long-term sustainability goals." J. Christopher Donahue, president and CEO of Federated Hermes, said the investment reflects "continued confidence in Federated Homes to deliver its investment objectives in a very competitive global private equity market."
Federated Hermes has $631.1 billion in assets under management. Beyond private markets, it offers equity, fixed income, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries globally.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.