French pension reserve fund awards private placement mandates
The mandates have been awarded to BNP Paribas Asset Management and Schelcher Prince Gestion and are for 12 years, with the option of a two-year extension.
They are for the creation and management of dedicated funds specialising in private placements (Euro PP) issued by small to medium-sized companies in France.
The mandates come on top of €300m in private debt mandates that FRR awarded earlier this month, this time for acquisition-related debt.
The two batches of mandates represent a €600m allocation to domestic private debt, in turn part of a €2bn allocation to French illiquid assets that FRR has been focussed on implementing over the past two years.
Mandates for a further €600m are in the pipeline, €200m being for venture capital and €400m for private equity funds-of-funds.
It is also increasing its allocation to infrastructure and real estate.
FRR has had a busy start to the year, having also announced the outcome of a large tender relating to its move to systematically integrate environmental, social, and governance (ESG) criteria in the management of its passive equities portfolio. Three asset managers will be splitting the €5bn mandate pot.