Norway's largest pension fund aims to ramp up PE investments

This comes as the Norwegian Ministry of Finance has asked Norges Bank Investment Management (NBIM), which is responsible for managing GPFG, to report on the extent to which the scheme currently participates in initial public offerings, and whether the bank believes investing the fund in companies at an earlier stage could contribute to more efficient execution of the fund's management.

The Oslo-based LP can currently invest in IPOs and in unlisted companies where the board has expressed an intention to seek a listing.

However, NBIM is of the opinion that an alternative to the current regulation would allow the LP to invest in large companies that are not listed yet, thus building up the desired exposure over a longer period.

Should the NBIM proposal be approved, then a limit to the weight of these investments in the overall portfolio would be set. NBIM believes that a limit of 1% of the equity portfolio would be sufficient to address the opportunity, according to the document.

The pension fund's NOK 9.1bn portfolio is currently invested in equities (69.3%), fixed income (28%) and unlisted real estate (2.7%).

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