The private equity arm of Denmark’s giant ATP pension fund is launching its fifth fund, having raised €800m by the final close.
The fifth fund – ATP PEP V – is set to follow the investment strategy of the previous four funds set up by the partnership, ATP PEP said.
Torben Vangstrup, managing partner of ATP PEP, told IPE: “It’s going to be very much similar to the prior four funds, actually, from a strategic point at least.
“It is going to be invested into buyout funds, around 70%, and then we would do some venture and distressed funds as well – and, finally, set aside around 10% for co-investments, primarily with the buyout funds.”
Vangstrup said the partnership was very pleased with the continued backing from ATP, which manages a total of around €80bn in assets.
The partnership said that, as with prior funds, the new fund would have an increasing focus on co-investments with general partners of the ATP PEP portfolio.
Geographically, the focus will continue to be on Europe and North America, as well as include select commitments in other parts of the world.
Across previous funds, last year’s commitments were all made in the US, Vangstrup said.
“If you look at 2013, we only did US funds – we were not able to find anything in Europe that made us do any deployment of capital,” he said.
“It was a reflection of the US market being more active, and I don’t think the quality we were looking for, around the managers, was there in Europe in the last year.”
Vangstrup said the partnership’s funds had consistently outperformed and put this down to “excellent teamwork, disciplined investment process and the strong relationships we have with ATP, as well as our portfolio of general partners”.
The new fund will start making commitments straightaway, ATP PEP said.