Key Takeaways
- • ACCESS, one of the Local Government Pension Scheme (LGPS) asset pools, has appointed Adams Street Partners and HarbourVest Partners as private equity allocators to source assets for its 11 LGPS funds.
- • The LGPS funds are expected to commit at least £500m a year for the first five years, with each manager potentially managing between £4bn and £6bn over the life of the mandate.
- • Investments will be made through a multi-vintage programme across primary and secondary vehicles and co-investments, globally, per an ACCESS press release.
- • The mandate follows ACCESS's establishment of an internal investment team and a regulated investment management company to meet government LGPS pooling requirements.
- • Over the past 18 months, ACCESS has announced several private markets real estate mandates, including a £1.3bn CBRE Investment Management property fund.
Summary
ACCESS, one of the Local Government Pension Scheme's asset pools, has appointed Adams Street Partners and HarbourVest Partners as private equity allocators, according to Pensions Expert. The two firms will source assets on behalf of the pool's 11 LGPS funds through a "multi-vintage programme" that allows the funds to invest over multiple years.
The LGPS funds are expected to commit at least £500m a year for the first five years of the arrangement. Adams Street and HarbourVest could each manage between £4bn and £6bn across the life of the mandate. Both managers will invest globally across primary and secondary vehicles and co-investments, according to a press release from ACCESS.
Mark Kemp-Gee, chairman of the ACCESS Joint Committee, said the pool's growth in scale now allows it to invest in private equity at a much lower cost, and that the pool hopes to gain diversification benefits and potentially higher returns than from traditional assets. Emily Archer, managing director for investor relations at HarbourVest, said the mandate harnesses the pool's scale to create flexible investment solutions suited to the needs of local authorities.
The appointments come as ACCESS seeks to establish an internal team and a regulated investment management company to ensure compliance with the government's intention for LGPS pooling. The pool said efforts are underway to build an investment team responsible for portfolio management and oversight.
Over the past 18 months, ACCESS has also announced a range of private markets mandates, including a £1.3bn property fund run by CBRE Investment Management, a long-lease mandate awarded to Aviva Investors, and a £100m impact real estate fund run by Orchard Street Investment Management. The pool has also backed an affordable housing fund run by Legal & General Investment Management.
Pensions Expert also reported separately that BT has awarded a $1bn private equity mandate to Hermes.
The LGPS funds are expected to commit at least £500m a year for the first five years of the arrangement. Adams Street and HarbourVest could each manage between £4bn and £6bn across the life of the mandate. Both managers will invest globally across primary and secondary vehicles and co-investments, according to a press release from ACCESS.
Mark Kemp-Gee, chairman of the ACCESS Joint Committee, said the pool's growth in scale now allows it to invest in private equity at a much lower cost, and that the pool hopes to gain diversification benefits and potentially higher returns than from traditional assets. Emily Archer, managing director for investor relations at HarbourVest, said the mandate harnesses the pool's scale to create flexible investment solutions suited to the needs of local authorities.
The appointments come as ACCESS seeks to establish an internal team and a regulated investment management company to ensure compliance with the government's intention for LGPS pooling. The pool said efforts are underway to build an investment team responsible for portfolio management and oversight.
Over the past 18 months, ACCESS has also announced a range of private markets mandates, including a £1.3bn property fund run by CBRE Investment Management, a long-lease mandate awarded to Aviva Investors, and a £100m impact real estate fund run by Orchard Street Investment Management. The pool has also backed an affordable housing fund run by Legal & General Investment Management.
Pensions Expert also reported separately that BT has awarded a $1bn private equity mandate to Hermes.
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