On the go: The £57.5bn BT Pension Scheme has awarded a $1bn (£801.4mn) private equity mandate to Hermes GPE, further building on two previous private equity investments with the manager.
Following a £1bn allocation to its Horizon I mandate in 2015 and a $1bn investment in Horizon II in 2018, the fund has now announced it has awarded a third private equity mandate to Hermes GPE.
The mandate, called Horizon III, will pursue a global thematically diversified strategy through a proven 50/50 funds and direct co-investment model established with the previous Horizon commitments.
The thematic investment strategy focuses on generating risk-adjusted returns by exploiting the opportunities created by four global economic mega trends, which it is claimed are largely independent of underlying economic cycles — the net zero economy, accelerating technological innovation, demographic and societal change, and the “global centre of gravity shift”.
Morten Nilsson, chief executive at BT Pension Scheme Management, said: “The Horizon mandates have delivered consistent, sustainable returns for the scheme throughout market cycles.
“Horizon III demonstrates our continued commitment to this asset class with investments that meet our long-term sustainability goals.”
The mandate will be invested over three years.
This article originally appeared on MandateWire.com
