Dutch pension Pensioenfonds PGB awarded RCP Advisors a five-year, $500 million mandate to build a portfolio of stakes in North America private equity funds. As part of the mandate, the system will consider managers focused on environmental, social and governance issues with each commitment. Specifically, companies in the portfolio will report on a/o (renewable) energy use, emissions, environmental policies, anti-corruption measures and diversity. And each company will be tracked on whether it contributes to reaching the UN Sustainable Development Goals.
Pensioenfonds PGB and RCP Advisors (RCP) have announced they will work closely together to build a portfolio of investments in North American private equity funds focused on the lower mid market.
The co-operation entails a five year USD 500 million private equity program that will have the objective of creating value through investing with managers who focus on value creation through operational improvements, job creation and Environmental, Social and Governance (ESG). Rob Heerkens, member of the board: “This North American program is an attractive addition to our already active European platform. It will be invested in a close, daily co-operation with a dedicated team at our fiduciary PGB Pension Services.”
Investing in business growth
With this strategy, PGB will focus on contributing to growth and development of companies across North America. This can take the form of guiding international expansion, recruiting external management to assist with the growth strategy and expanding the range of products and services offered.
Dick Tol, Senior Portfolio Manager Private Equity at PGB Pension Services: “The program will have a hands-on approach. The majority of the return is expected to be generated by growth, as opposed to financial leverage. The PGB private equity team will closely monitor developments on the ESG side like job creation and environmental considerations in the underlying companies.”
Jeff Gehl, Founder and Managing Partner of RCP Advisors: “RCP is excited to enter into this new partnership with one of the premier institutional investors in Europe. RCP’s 20-year strategic focus has made us the partner of choice across Europe to help investors access the North American lower middle market buyout space. We are proud to be at the forefront of promoting ESG issues within this private equity market and with the managers we back.”
Co-operation for the long term future
After an extensive search, PGB selected RCP to manage this program. RCP’s experienced team and extensive network across North America will provide PGB with the capacity and experience to assess a wide range of investment opportunities. This will lead to a broadly diversified portfolio of private equity funds. Both PGB and RCP will judge whether the cost structure in any fund commitment made is appropriate for the targeted investment outcome and the services delivered.
In the lower and middle market arena, excess returns can be achieved by growing companies in a responsible way. With this program, PGB expects to contribute to companies that have a positive impact in creating a sustainable and better environment. Responsible investment and climate criteria will be part of every investment decision. PGB and RCP will work together to have companies in the portfolio report on a/o (renewable) energy use, emissions, environmental policies, anti-corruption measures and diversity. Every company in the portfolio will be tracked on whether it contributes to reaching the UN Sustainable Development Goals.
Yorick Groen, Senior Portfolio Manager Private Equity at PGB Pension Services: “The current environment will present many interesting investment opportunities. With this program we are ready to engage and enable growth in dozens of companies. In RCP we have found a partner for a long lasting cooperation. RCP not only shares our strategic view on the North American private equity market, but also our care for responsible investing.”
Alexander Abell, Partner and Head of RCP Solutions: “Our partnership with PGB is the latest example of ways RCP can leverage its expertise, relationships, and access in the North American lower middle market to create a customized solution for institutional clients looking for specialized programs. Our RCP Solutions team will work hand in hand with PGB’s portfolio managers to construct a portfolio that achieves PGB’s long term investment performance goals along with its mission to promote responsible investing.”
About Pensioenfonds PGB
Pensioenfonds PGB is the pension fund for and arranged by social partners from various sectors. Social partners and PGB work together to ensure good and affordable pensions. Every sector and every employer is different. Consequently, social partners and employers decide for themselves just what sort of pension scheme they want us to provide for them. With assets in excess of € 28 billion, PGB is among the top 10 largest pension funds in the Netherlands.
PGB was established in 1953 by employers and employees in the graphic arts industry. Since then, several other business sectors have affiliated themselves to PGB.
About PGB Pensioendiensten (Pension Services)
PGB Pensioendiensten is the dedicated fiduciary manager and administrator for Pensioenfonds PGB.
About RCP Advisors
Founded in 2001, RCP Advisors is a private equity investment firm that provides access to North American lower middle market private equity fund managers primarily through funds-of-funds, secondary funds, co-investment funds, as well as private credit solutions through its affiliate, Five Points Credit. Additionally, RCP Advisors provides advisory and research services. RCP Advisors is headquartered in Chicago, Illinois with additional operations in Newport Beach, California, Dallas, Texas, and Winston-Salem, North Carolina. With over $8.5 billion in committed capital and 48 full-time professionals as of May 6, 2020, RCP believes that it is one of the largest fund sponsors exclusively focused on the lower middle market segment of the North American private equity market.
The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction.