Compenswiss, the public institution managing Switzerland’s first pillar social security funds AHV, IV and EO worth a total of CHF40bn (€39.9bn), is expanding its private debt programme, looking for managers to invest in Europe and the US.

“We have invested in private debt in Switzerland for many years – now we are diversifying the programme,” chief investment strategist and member of the executive committee Frank Juliano told IPE.

The pension fund is looking for asset managers via IPE Quest to invest a total of €120m in senior corporate direct lending (unleveraged) in Europe and the US. It is splitting investments equally – €60m for each region.

Asset management companies looking to participate are required to hold a minimum of €5bn in total assets under management (AUM) and €500m in total assets for the asset class.

Compenswiss will invest in closed-end and open-end funds, preferably based in Europe, open for commitment until at least 30 June, without leverage and with a senior debt profile. It will not invest in first time funds, it said.

The deadline to apply for the mandate is 3 February, with the final selection taking place on 15 June.

Compenswiss continues to invest in private debt (direct lending) with the aim to increase exposure to private assets.

“It will help our diversification and enhance long-term returns, with only a slight increase in risk,” Juliano said.

It plans to send out request for proposals (RFPs) regularly to solicit bids to increase exposure to the asset class.

“From today’s perspective, the target portfolio could grow up to 3% of AUM in a few years time. Diversification is key – by region, manager and vintage,” Juliano said.

The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email jayna.vishram@ipe-quest.com.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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