ERAFP launches a tender for selection of Private Equity and Infrastructure managers
- 3 February 2016
As part of its policy of expanding its investment universe and in accordance with its SRI approach, the French public service additional pension scheme (ERAFP) has launched a restricted call for tender for the award of Private Equity and Infrastructure mandates.
To select the management companies that will be awarded these mandates, ERAFP has launched a call for tender composed of two lots.
Lot 1 - Private Equity
ERAFP wishes to support the growth, expansion and business transmission projects of unlisted European SMEs and mid-tier companies. The mandate will have for objective to construct a diversified portfolio of financial holdings in the equity or quasi-equity of robust, profitable and innovative European companies.
Over an investment horizon of ten years and throughout the various macroeconomic cycles, the portfolio will aim to deliver recurrent returns and capital gains while minimising the reputation risk and financial risk specific to this asset class.
Lot 2 - Infrastructure
ERAFP wishes to invest in the Equity, Quasi-Equity and Debt of project companies whose purpose may be in particular the funding, refinancing, building, operation, operational management maintenance, restructuring and upgrading of critical infrastructure. These infrastructure projects are or will be carried out in OECD countries.
The assets targeted by ERAFP investments could form part of Public Private Partnerships (PPP), privatisation of State assets or reduction of private companies’ commitments in infrastructure assets.
The mandate holder’s goal will be to deliver regular returns and optimise long-term performance with a moderate risk approach that will, in particular, take into account the reputation risk for ERAFP and minimise the risks specific to this asset class.
Each of these mandates must comply with ERAFP’s SRI approach for the relevant asset class.
By way of indication, the amounts committed will amount to around EUR 200 million for Lot 1 and around EUR 150 million for Lot 2.
The initial term of the mandates is ten years, which ERAFP has the option of extending by two successive periods of two years each.
The consultation document is available at www.achatpublic.com.