Pension fund invests in private equity venture
Published 22/09/2010 | 05:00
THE National Pension Reserve Fund has bought into a private equity company which invests in distressed debt and company restructurings.
The fund, which has avoided private equity for two years, recently contributed to the HIG Bayside Loan Opportunity Fund II, which recently completed a fund-raising across Europe and the US.
It is not known how much the fund pumped into the Bayside opportunity, but it is likely to be relatively small, with the fund only devoting 8pc of its money to private equity.
The other major investment so far this year has been in the area of hi-tech.
The Bayside fund closed its doors to further investment earlier this month. It describes itself as a "special situation loan fund focused on distressed transaction''.
It is understood it received $1.1bn from investors.
When it invests in companies it will not seek to control them, but will provide liquidity to what it calls "troubled companies''.
The pension fund, which holds its assets to cover the cost of public sector pensions, reported a -2.6pc return in the three months to the end of June 2010, but recorded a gain in asset values of 2.3pc in the first six months.
Since its inception the annualised performance of the portfolio is 2.7pc per annum compared with an annualised return of 0.7pc over the same period for the average pension fund.