Partners Group launches impact fund
Partners Group has launched PG Life, a global impact strategy focused on the UN's sustainable development goals (SDG), with a $1bn hard-cap.
The GP has launched the strategy to meet demand from existing LPs that wanted a separate allocation for their impact investments.
It follows launches of similar strategies by several other global private equity firms in recent months, including TPG, KKR and Bain Capital. Unquote sister publication AVCJ recently examined the appeal of these new strategies to institutional investors.
An external council will be assembled to provide advice on strategic aspects and an impact measurement methodology. The so-called Life Council will include former UN General Assembly president Vuk Jeremić, Philippines secretary of finance Cesar Purisima and Partners Group co-founder Urs Wietlisbach.
No immediate additional external hires are being made in conjunction with the strategy, though the group may consider strengthening the investment team, a spokesperson confirmed.
The strategy was announced at Partners Group's AGM, where former UK prime minister Gordon Brown spoke on the need for private capital to contribute to achieving the SDGs, and later joined the Life Council's inaugural meeting.
The fund will invest across corporates, infrastructure and real estate using blended equity and debt instruments. It targets exposure of 75% equity to 25% debt.
The new strategy was set up in response to demand within Partners Group's existing LP base, but the firm also expects to raise capital from new investors.
The latest Partners Group buyout fund (Partners Group Direct Equity 2016) attracted commitments from a wide range of international LPs, according to Unquote Data.
Partners Group will use the new fund to support transactions generated under its existing strategies that fit with and promote the UN's SDGs. This will include both equity and debt investments in private companies, infrastructure and real estate.
In recent years, Partners Group has invested an average of more than $1bn into companies and assets pursuing a strategy consistent with some of the SDGs. In particular, the SDGs relating to education, healthcare, energy access, clean energy, and social inclusion have been focal points of Partners Group's investment activities, the firm said.
The fund does not have a target percentage split between regions, but as a general rule, Partners Group invests around 40% annually in the Americas, 40% in Europe, and 20% in Asia and the rest of the world.
Partners Group – André Frei (co-CEO).
GP Profile: BGF to deploy GBP 500m-plus per year for minority growth deals with entrepreneurs
UK-based growth investor remains committed to filling a market gap for founders who want flexibility and control
European sponsors sidestep panic, concede gloom over bank woes
Fallout from Credit Suisse collapse adds to slew of macroeconomic challenges for PE dealmaking and fundraising
Inflexion sells The Goat Agency to trade, nets 80% IRR
GP sells minority stake in UK-based social media marketing agency after two year investment period
Synova kicks off new fund deployment with Learnlight acquisition
Investment in Spanish edtech platform is the first from GBP 875m vehicle raised in three months last year