Fondo Fon.Te sharpens private markets focus with new multi-asset mandate

Fondo Fon.Te, the pension fund for Italy’s commerce, tourism and services sector workers, has refined the investment strategy of its sub-funds to step up allocations to private markets, awarding a multi-asset mandate to DeA Capital.

The mandate covers private market investments across three of the scheme’s sub-funds – ‘Sviluppo’, ‘Crescita’ and ‘Dinamico’ — and is part of a broader effort by the €6bn pension fund to deepen its exposure to illiquid assets.

Under the revised strategy, the €3bn ‘Sviluppo’ sub-fund will double its allocation to private markets from 5% to 10%, investing via closed-end alternative investment funds (AIFs) focused on infrastructure, private equity, private debt and venture capital, with a particular emphasis on Italy.

According to the fund’s investment policy document, ‘Sviluppo’ will also allocate capital to closed-end AIFs with a pan-European remit, managed under the new multi-asset mandate.

The portfolio will be structured with a minimum 35% allocation to private debt and direct lending strategies, at least 25% in private equity via buyout and growth strategies, and 10% in AIFs targeting infrastructure and real estate.

The ‘Crescita’ and ‘Dinamico’ sub-funds – managing €600m and €580m respectively – will also allocate up to 10% of their portfolios to private markets, following the same strategic framework applied to ‘Sviluppo’.

Meanwhile, the ‘Conservativo’ sub-fund, worth €1.83bn in assets, will target up to 15% of assets managed under a total return mandate for investment in alternative funds.

The pension fund’s shift in strategic asset allocation marks a continuation of its commitment to private markets, a journey that began in 2022 with investments in private equity and private debt funds managed by Fondo Italiano d’Investimento via the ‘Sviluppo’ sub-fund.

Fondo Fon.Te has also allocated smaller portions of assets from the ‘Crescita’, ‘Dinamico’ and ‘Sviluppo’ sub-funds to infrastructure vehicles managed by Azimut, F2i and Green Arrow, it said.

Over the past few years, the pension fund has invested close to €1bn in private markets.

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