Institutional Update

The Seventh Swedish National Pension Fund (AP-7) was set up in 2000 and is part of a family of six state pension funds operating within the Swedish pension system. The Seventh scheme is made up of two funds: the Premium Savings Fund (Premiesparfonden) - this represents a default fund in which contributions are invested from income earners who decide not actively to select from defined contribution pension funds; and the Premium Choice Fund (Premievalsfonden) - this fund has the same management team as the Premium Savings Fund, although unlike the Premium Savings Fund, it can invest all of its assets in equities; earners can opt to invest some or all of their savings in this fund. The Seventh Swedish National Pension Fund (AP 7) have hired Hamilton Lane Advisors and Harbourvest Partners to manage their private equity mandate. The pension fund has recently announced that they have set their allocation to the private equity asset class at 5% (4% of the Premium Savings Fund, and 8% of the Premium Choice Fund). As the fund is currently growing rapidly, it will make further commitments each year. Investments to private equity, however, will only be made via funds-of-funds, in order to diversify the portfolio. AP-7 has a remit which encompasses both the US and Continental Europe. Presently they have committed the full 4%, and approximately 10% of this has been drawn down.

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