Over the years PensionDanmark has invested in a variety of asset classes and geographies through private fund structures managed by external fund managers.
Today, the primary focus is to increase exposure to traditional private equity funds. Other asset classes such as mezzanine, distressed debt, infrastructure, real estate funds and farmland may be considered on an ad hoc basis, subject to priorities.
The private equity portfolio serves to complement the public equities portfolio. With proper manager selection, and vintage year diversification, we believe private equity is likely to offer attractive return premiums. In addition, private markets offer exposure to parts of the economy that public markets do not, and private equity is well suited to tap into these and accelerate value creation.
Philosophy and approach
Our strategy is to focus on mature, well-established fund managers who predominantly invest in Western Europe and the US, while limiting the amount of GP relationships. We seek consistent return premiums rather than exposure, are strong believers in proven fund managers and employ a long term high conviction fund picking approach.