(June 6, 2014) – UK pension manager Railpen (RPMI) is seeking to bring more of its allocation to private markets in-house, in a bid to lower its cost base.
Richard Moon, a specialist private equity and infrastructure investment manager at the group, told aiCIO RPMI was considering “a number of investment models outside the traditional fund model” for private equity.
These options included co-investment alongside other schemes or private equity specialists, or even direct purchases.
Railpen Head of Investment Management Paul Bishop has overseen a shift away from a long-held fund-buyer approach towards more direct investments in several areas of the company’s portfolio—particularly hedge funds, where RPMI has moved away from a fund-of-funds model.
Sanjay Mistry, Director for Private Equity Fund of Funds and Private Debt at Mercer, said: “Some larger schemes have been looking to bring [private equity] in house for a while. We’ve been seeing a move to provide more tailored solutions, then [investors] start to take a view of how much they can do internally.”
Look out for an in-depth look at why—and how—pension funds are bringing private equity in-house in the new-look European edition of aiCIO magazine, out later this month. You can subscribe here.
Related links: RPMI Railpen Hires Chief Investment Risk Officer