New regulations set to spur Swedish state pensions investment in PE

The Swedish Ministry of Finance presented the proposal to ease investment restrictions for the country's pension funds: AP1, AP2, AP3 and AP4.

The main changes will see the lowering of the minimum requirement for fixed income from 30% to 20% of the portfolio, and the increase of unlisted investments from the current 5% maximum to 40%.

The changes will also insert into law a requirement to manage the portfolio in a sustainable way.

According to Tobias Fransson, head of strategy and sustainability at AP4, this "will give the AP Funds the ability to allocate away from low-returning fixed income and into illiquid and alternatives. However, this can still only be invested through funds."

However, according to Fransson, a second, complementary step will also be analysed during the autumn of 2018 – the ability to invest directly across private equity, infrastructure and private debt. These further reforms could be implemented by mid-2019.

Fransson concluded that the new guidelines would be in line with current international practice, and that initially the Nordic market would be the area of focus for direct investments.

AP4's recent commitment includes €30m to the EQT Mid-Market Europe fund, as well as investments in EQT Infrastructure III and EQT Ventures Fund. AP2 has recently backed EQT VIII and TPG's Rise Fund.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• LPs
• Nordics
• Regulation
• Sweden