Danish pension fund manager ATP has boosted its commitment to private equity funds. ATP Private Equity Managers is hoping to commit EURO4.5 billion to investments in private equity by 2005, which is around ten per cent of its total assets. At present ATP’s commitment to private equity stands at one per cent.
ATP will create a portfolio of around 75 managers and aims to be one of the top ten investors in each fund. Around 65 per cent of investments will target buyouts, while the remaining 35 per cent is allocated to venture investments. Commitments will be split equally between the US and Europe. Average size of investments will vary. ATP will allocate between EURO10 million and EURO75 million to each fund it chooses to invest in. The fund will also make co-investments in deals led by other private equity houses in Europe in the range of EURO5 million and EURO25 million. ATP will also invest in direct investments with a focus on public to privates, change of capital structure and spin-offs in Scandinavia. Investments will be in the range of EURO3 million and EURO15 million.
Jens Bisgaard-Frantzen, managing director, said: “Our aim is to become a leading European private equity manager, based in Denmark. The decision to increase our commitment to private equity was taken by the management of ATP as part of an asset management study for the pension fund.”