UK pension fund launches private debt search

The North Yorkshire Pension Fund will invest £120m-£130m in private corporate debt.

North Yorkshire Pension Fund (NYPF) is looking to invest £120 million-£130 million (€175 million; $189.5 million) in one or more funds that invest in private corporate debt, according to a contract notice on Tenders Electronic Daily, part of the official journal of the European Union.

The UK pension fund will appoint one or two managers to oversee the assets.

Bfinance is assisting NYPF in its search. Tenders or requests to participate are directed for the attention of Witold Witkiewicz, Dharmy Rai or Kevin Chan at bfinance.

NYPF was unavailable for comment at time of publication.

This is the first time NYFP has allocated to the private debt, Alexandra Martinez and Witold Witkiewicz, directors at bfinance, told PDI

“More and more institutional clients are either getting comfortable with the asset class and allocating,” Witkiewicz said.

Bfinance will review and appoint a direct lending fund manager with European mid-market experience. It will select one to two managers with funds with experience in investing in small to medium size enterprises across Europe, particularly in the UK and Northern Europe. 

The pension fund manager had roughly £2.4 billion in assets under management, as at 31 March 2015. Around 3.7 percent of that was allocated to alternatives including private equity and real estate, according to PDI Research & Analytics.

In June 2014, the pension fund manager said that it was no longer prepared to invest in private equity, saying it did not add much value to its portfolio. NYPF is part of the UK’s Local Government Pension Scheme.