Danish pension fund P+ has awarded Schroders Capital a EUR 200 million (DKK 1.5 billion) private equity co-investment mandate, seeking to increase its exposure to European companies and access investment opportunities in the region’s lower and mid-market segment.

The mandate will focus on co-investments alongside specialist private equity managers in European businesses with growth potential. Investments will span five sectors: healthcare, technology, business services, consumer and industrials.

For P+, the allocation reflects both its long-term return objectives and a broader ambition to direct more capital towards European businesses. The pension fund sees opportunities in companies with established market positions and potential for further operational development, particularly in segments that can be difficult for institutional investors to access directly.

“Europe is home to many attractive growth companies with strong market positions and significant value creation potential,” says Jasper Riis, Chief Investment Officer at P+. “Through this investment, P+ gains access to a segment of the market that is difficult to reach directly, while also strengthening our exposure to European growth.”

Riis also points to the strategic importance of supporting European businesses amid a changing geopolitical and economic environment.

“Given the new global environment we are facing, there is a strategic need for investments that can strengthen European competitiveness and resilience,” he adds. “The fund’s focus on Europe fits very well with P+’s long-term investment strategy and our ambition to increase our investment in European companies.”

Accessing Europe’s Lower and Mid-Market

The mandate will be implemented through Schroders Capital’s European private equity co-investment strategy, which invests directly alongside established general partners. The approach is intended to provide access to transactions sourced through specialist managers, while allowing Schroders Capital to participate in the underwriting and selection of individual investments.

Benjamin Alt, Head of Global Private Equity Portfolios at Schroders Capital, sees opportunities in the European lower and mid-market, particularly among businesses with a domestic focus and exposure to service-oriented industries.

“This segment continues to offer a deep opportunity set across companies where transformational growth can be driven,” says Alt. “It also tends to show greater resilience during periods of uncertainty, as many of the underlying businesses are more domestically focused and service-orientated.”

For institutional investors, co-investments can provide more targeted exposure to individual companies and may offer a different fee structure from traditional private equity fund commitments. They also require access to transactions, due diligence capabilities and the ability to evaluate investments alongside sponsoring managers.

Schroders Capital manages USD 29.7 billion in private equity assets, according to the firm, with more than 25 years of experience across primary fund investments, co-investments and continuation transactions.

Henrik Jonsson, Head of Nordics and Netherlands at Schroders (pictured), welcomes the appointment as a further development of the firm’s institutional business in the region.

“We are delighted to have been selected by P+ for this important mandate,” says Jonsson. “It reflects confidence in Schroders Capital’s private equity platform, our ability to deliver solutions through a fully integrated platform, and our enduring commitment to supporting clients across the Nordic region.”

The appointment adds to P+’s private markets exposure while supporting its objective of increasing investments in European companies through a dedicated co-investment portfolio.