The pension fund for the employees of the Italian bank Monte dei Paschi di Siena has launched a manager selection process to invest €135m in private markets close-ended funds.
The scheme plans to allocate €110m to alternative investment funds (AIFs) for infrastructure or real estate investments, and €25m to AIFs for private debt investments, it said in a note. Asset managers have until 24 November to participate in the tender process.
Investments in infrastructure and real estate would generate stable cash flows, financing projects in transport, networks, utilities, health, and education sectors, with the goal to supporting sustainable energy and urban redevelopment, the fund added.
The pension fund will invest a maximum of 25% of its total assets in green field projects. It requires that the majority (70%) of real estate and infrastructure projects are located in Italy.
The scheme will pick an asset manager handling at least €1bn through close-ended AIFs, whereas the AIFs would aim to raise at least €400m, with hard commitments of €150m, falling under Articles 8 or 9 of the Sustainable Finance Disclosure Regulation (SFDR).
AIFs for private debt investments would instead adopt strategies focused on senior secured loans and sub/mezzanine financing.
The pension fund excludes the possibly of investing in infrastructure debt and real estate debt, while keeping its allocation to non performing loans (NPLs) to a maximum of 20% of total assets, and the allocation to distressed debt to a maximum 30% of total assets.
The scheme will invest in private debt predominately in Italy (70%), and in the European Union.
It will select a private debt AIFs manager with total asstets of at least €300m, classified under Article 8 or 9 of the SFDR, with hard commitments of €50m. The AIFs would target a minimum €100m capital raise, it added.
Fondo Pensione Monte dei Paschi di Siena had €1.48bn of assets under management at the end of last year, investing through sub-funds Sicurezza, Progressione, Espansione and Garantita.
Last year, the scheme reviewed its strategic asset allocation, closing down the Prudente, Attiva, Bilanciata and Dynamic sub-funds, according to the fund’s financial statement for 2022.
It picked new asset managers for sub-fund Sicurezza including DWS, Eurizon Capital, Vontobel Asset Management, and Azimut Capital Management.
For the sub-fund Progressione, the new asset managers include Amundi, Goldman Sachs, Generali Investments, DWS and Candriam, and for the Espansione sub-fund, teh scheme uses Amundi, Vontobel Asset Management, Pictet Asset Management, and Azimut Investments, the statement added.
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