The ACCESS investment pool – composed of 11 local government pension schemes (LGPS) in England’s central, eastern and southern shires, with assets worth £52bn (€61.6bn) – has appointed Adams Street Partners and HarbourVest Partners as its private equity managers for a total of £1bn.
The duo will oversee a multi-vintage programme whereby LGPS member funds will have the ability to commit to vintages on an ongoing basis over the term of the mandate. Each vintage is expected to be globally diversified, with investments across primary funds, secondary funds, and co-investments, the pool disclosed.
For the first five vintage years of the mandate, it is anticipated that the aggregate size of the annual commitments to both Adams Street and HarbourVest will be an average of £500m each or more each year.
Considering the potential ultimate scale of the mandate, it is anticipated that total assets across all vintages for both managers could exceed £4-6bn, based on potential asset growth, and/or increases to individual LGPS member funds’ target allocations.
The appointment of the two managers followed a competitive tender in April 2024, carried out as a two-stage restricted procedure, and follows recent allocations by the pool to other areas of private markets, including to infrastructure, social affordable housing and impact real estate.
Mark Kemp-Gee, chair of the ACCESS joint committee, said: “This marks the third phase of our private markets programme that has seen ACCESS steadily add private markets assets into its investable universe, the latest being a significant commitment to private equity through two market-leading investment partners in Adams Street and HarbourVest.“
He added: “Our scale and assets have grown to the point where the pool is harnessing the benefits of being able to invest in private equity at a much lower cost, and hope to reap the diversification benefits and potentially higher returns than on traditional assets.”
Jeff Diehl, managing partner and head of investments at Adams Street Partners, commented: “Adams Street’s disciplined approach and half century of private equity experience will support ACCESS’s current goals while cultivating enduring value for all of their stakeholders.”
Emily Archer, managing director, investor relations at HarbourVest Partners, added the firm would “draw upon our deep history of private equity investing” on behalf of the LGPS to serve ACCESS pension savers and deliver risk-adjusted returns on a long-term and sustainable basis.
New investment company
ACCESS recently announced its intention to establish its own investment management company authorised by the Financial Conduct Authority (FCA).