Stockholm (HedgeNordic) – Danish public pension fund LD Pensions has initiated a tender process to find an investment manager to oversee assets within listed alternatives. The expected size of the mandate is DKK 2 billion, equivalent to about €268 million, to be invested in listed alternative securities with underlying exposure to private market assets.
According to a tender notice by LD Pensions, “the objective for the mandate is to outperform private market returns over a full market cycle by investing in Listed Alternative securities,…all with underlying exposure to private market assets.” The pensions manager published the tender earlier this July in the European public procurement journal, Tenders Electronic Daily (TED). LD Pensions is responsible for managing the Holiday Allowance Fund (Lønmodtagernes Feriemidler) and the Cost-of-Living Allowance Fund (Lønmodtagernes Dyrtidsmidler).
In terms of selection criteria, LD Pensions requires the tenderer to have experience in managing a fund or segregated account with securities such as listed investment companies, listed investment trusts, listed closed-end funds, investment companies, business development companies, REITs and venture capital trusts – all with underlying exposure to private market assets. The tenderer should also submit a description of between one and three track records or references. These track records or references should pertain to a mandate of at least €20 million that is either ongoing or concluded within the last three years. The deadline for receipt of tenders or requests to participate is August 17, as stated in the tender notice.
The Frederiksberg-based pension fund manager largely relies on outsourcing to conduct its investment activities. The board of directors and the management led by Lars Mayland Nielsen handle the overall strategic management, including the objectives for outsourcing to the collaboration partners and the guidelines for follow-up and control. LD Pensions then selects Danish and foreign portfolio managers who are responsible for investment management concerning different investment mandates.