Cassa Forense, the €19.5bn Italian pension fund for lawyers, has stepped up its allocation to private markets, surpassing the target set in its 2024-26 strategic asset allocation.
Investments in private equity, private debt and infrastructure now account for close to 15% of the fund’s total assets, exceeding the 13% limit defined in its 2024-2026 strategic plan, according to president Maria Annunziata.
The pension fund, Italy’s second largest, has increased commitments to alternative asset classes from 11.4% at the end of 2024, cutting exposure to equities, bonds and real estate. It underwrote €735m in new alternative mandates, including €350m in private equity.
“This isn’t just a matter of percentage, but a true strategic transformation. The exposure to these asset classes has not been concentrated in a few vehicles but has been built across a very broad range of opportunities,” Annunziata told FocusRisparmio, a publication published by Italian asset management association Assogestioni.
She added that private markets continue to offer opportunities for pension investors, even after inflation and restrictive central bank policies pushed bond yields back to levels not seen in years.
In private equity, Cassa Forense is targeting innovative small and medium-sized firms and growth companies with the potential to generate returns often much higher than the average growth necessary to ensure the sustainability of a pension fund, Annunziata said.
Such allocations are also seen as a way to support the domestic economy, she added.
In private debt, the fund is looking to back companies facing difficulties accessing bank credit, with this year’s focus on tech lending and credit secondaries.
“Investments in infrastructure, such as those related to the energy transition or digitalisation, have a direct impact on Italy’s competitiveness,” Annunziata noted.
According to the latest report by think tank Itinerari Previdenziali, first-pillar pension funds (Casse di Previdenza} held €25.41bn in alternative investment funds (AIFs) at the end of 2024, up from €23.59bn in 2023. AIF allocations represented 22.05% of their combined €115bn in assets.
Cassa Forense currently invests in more than 150 funds, working with over 70 managers in Italy and abroad.
“This choice reflects the intention to diversify as much as possible, both by sector and geographical area, reducing specific risks and increasing the probability of intercepting superior performance,” Annunziata said.
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