BT Pension Scheme awards $1bn private equity mandate to Federated Hermes

BT Pension Scheme (BTPS) has awarded a $1bn private equity mandate to Federated Hermes that will be invested over three years.

The mandate, which is called Horizon III, will be managed by Federated Hermes’ wholly owned subsidiary, Hermes GPE LLP.

It will use the global thematically diversified strategy through 50/50 funds and direct co-investment model established following similarly sized investment allocations managed for BT Pension Scheme, Horizon I and Horizon II.

Hermes GPE’s thematic investment strategy focuses on generating risk-adjusted returns by taking advantage of the opportunities created by the net-zero economy, accelerating technological innovation, demographic and societal change, and the global centre of gravity shift.

So far, Hermes GPE has invested more than $11bn across 300 funds and more than 260 co-investments.

Commenting on the mandate announcement, Federated Hermes president and chief executive ofccier, J. Christopher Donahue, said: “BTPS is an important customer across our private markets platform and the Horizon III mandate demonstrates BTPS’s continued confidence in the ability of Federated Hermes to deliver its investment objectives in a very competitive global private equity market.

“As Federated Hermes continues to invest in its private markets business, which includes private equity, real estate, private debt and infrastructure, we recognize its importance to customers around the globe.”

BT Pension Scheme Management chief executive officer, Morten Nilsson, added: “The Horizon mandates have delivered consistent, sustainable returns for the scheme throughout market cycles. Horizon III demonstrates our continued commitment to this asset class with investments that meet our long-term sustainability goals.”

Hermes GPE chief investment officer and head, Peter Gale, concluded: “We have been constructing private equity portfolios for BTPS since the 2000s, which showcases our pension scheme roots.

“Our dynamic investment approach combines top-down macroeconomic considerations with bottom-up detailed research that clearly resonates with BTPS and we work closely with its investment team to ensure private equity plays an effective role in the scheme’s asset allocation strategy.”

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Multi asset credit
Pensions Age editor, Laura Blows, discusses multi asset credit with Royal London Asset Management senior fund manager, Khuram Sharih
Pensions Age podcast: buy-outs and buy-ins for member and employer nominated trustees
Pitfalls and good practice when approaching insurers with Pensions Age editor, Laura Blows, Martin Parker (Just Group) and Akash Rooprai (ITS)

Advertisement Advertisement