PGGM May Bring Private Equity In-house

Dutch pension fund PGGM Investments, which manages more than €83 billion ($110 billion), is rumored to be considering setting up its own in-house private equity team, in addition to or instead of relying on global private equity fund manager AlpInvest.

Neither party would confirm a change in strategy, but a spokesperson for AlpInvest stated a number of options are being explored and that no conclusion has, as yet, been made. PGGM set up AlpInvest, along with fellow Dutch pension fund APG, to manage the private equity portfolios of its pension fund assets.

APG stated it had no plans to change its commitment to AlpInvest as its private equity fund manager. In 2009, AlpInvest received €5.3 billion of new commitments and further commitments are expected this year, according to the fund manager.

Examples of U.S. buyout firms AlpInvest has backed include Bain Capital, Berkshire Partners, The Carlyle Group, Golden Gate Capital, Hellman & Friedman, Kohlberg Kravis Roberts & Co., Lake Capital, Madison Dearborn Partners, Sun Capital Partners and TPG.

AlpInvest manages more than €40 billion of private equity investments globally for Dutch pension funds APG, which manages pension assets of approximately €205 billion, and PGGM Investments