Berkshire takes stake in alternative investor

Having previously announced a planned allocation to sterling-denominated private debt, the pension fund has taken a 20 percent stake in Gresham House.

The Royal County of Berkshire Pension Fund has taken a 20 percent stake in UK-based alternative asset manager Gresham House. The pension fund has also invested in a new platform being provided by Gresham.

According to an announcement by Gresham House, the firm is looking to raise £300 million for its Gresham House British Strategic Investment Fund. A spokesman for Gresham House told PDI the underlying investments in the fund had not yet been determined. While Gresham House invests across multiple illiquid assets, it has rarely forayed into private debt, he added.

Berkshire’s pension fund, has, however, recently expressed a desire to boost its private debt holdings.

In September, the fund noted in its annual financial report it was aiming to increase its allocation to the asset class. It said it is seeking higher-yielding strategies at a time of low interest rates. The fund also noted it plans to increase allocations to private equity, emerging-market infrastructure and mid-market UK infrastructure.

A spokesman for Berkshire’s pension fund did not respond to requests for comment by time of publication.

Gresham House is an alternative asset manager largely focusing on strategic equity and real asset investing. According to the firm’s website, it targets 15 percent internal rates of return on its investments.