Partners Group targets UK defined contribution market with new fund

Greg Gille
15 June 2016

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Partners Group has launched its first private markets vehicle targeting the UK defined contribution pensions industry, Partners Group Generations Fund.

The Partners Group Generations Fund has been structured as a non-UCITS retail scheme, with its primary allocation being to private market asset classes, in addition to a portion of yield-seeking credit investment opportunities and listed assets. The former pot will cover private equity, private debt, private infrastructure and private real estate.

Partners Group stated that the goal of this new product was to offer daily liquidity and pricing to its clients via standardised purchase and redemption procedures. This approach was designed to comply with the regulatory and structural constraints faced by defined contribution pension schemes. These have been gaining in popularity at the expense of defined benefit schemes, although the latter were hitherto more readily able to benefit from exposure to private market asset classes as part of their investment portfolio.

Much like other asset managers aiming to successfully address this growing and largely untapped market, Partners Group started launching products designed for the defined contribution schemes in 2015, claiming it could offer better returns in line with those enjoyed by the defined benefit pensions industry, while meeting the need for greater liquidity.

Partners launched its first private equity offering with daily pricing and liquidity for the US defined contribution market in 2015, before launching similar products in Australia and most recently the UK.