NETHERLANDS – Zeist based NLG110bn (e50bn) Dutch fund PGGM is to continue increasing its investment allocation to private equity to 7.5% of its portfolio by the end of this year, following stellar performance from the asset class in 2000.
The fund, which upped its private equity portion from 4.6% at the end of 1999 to 6.3% by the end of 2000, plans to transfer the further increase in assets to its private equity subsidiary NIB Capital Private Equity – jointly owned with ABP – before the year end, according to PGGM spokesperson, Alfred Kool.
Private equity as an asset class returned 33% for the fund last year.
Kool comments: “ The expectation is to let it grow towards 7.5% of the total portfolio by the end of this year.
“ I think NIB is always looking for new opportunities, but I believe they will invest the assets in more or less the same way that they did before, rather profitability I must say, because we realised a return of 33% on private equity last year, which was well above average.”