The People’s Partnership is building on its in-house capability with a couple of hires in order to push its private markets investment plan, while delivering value for members.
In a latest move, the master trust has appointed two new co-heads of real assets to lead its drive into private markets, which will include significant investment in the UK, it said in a statement today.
The appointment of Marija Simpraga and Raymond Wright means that the People’s Partnership will have the in-house capability needed to build on the ambition to invest 10% of its growth pool assets in private markets by 2030.
Simpraga brings extensive strategic infrastructure expertise to her new role, having previously led private infrastructure research at Legal & General Investment Management (LGIM), where she focused on European clean energy and digital infrastructure, guiding more than £10bn in real asset strategies.
Wright, meanwhile, brings in 22 years in pension fund management, including 16 years at British Airways Pensions, where he developed expertise in investment management and portfolio oversight. Throughout his career, he has managed diverse private market assets, focusing on innovative strategies that align with ESG principles, manage risk, and drive performance across various asset classes.
Last September, the provider of master trust The People’s Pension said it would develop the in-house capabilities needed to invest in private assets.
Earlier this year, The People’s Pension announced its intention to invest a “significant” proportion of its £31bn in private markets later this year, with a target of growing the allocation to £4bn by 2030.
At the time, the master trust said it was preparing to take its first steps into private market investment, with the imminent appointment of a private markets specialist and the creation of a research capability.
It added that a “substantial” part of this new asset allocation could be deployed in the UK if assets meet the return requirements.
People’s Partnership’s chief investment officer Dan Mikulskis said the two internal appointments mark “an important milestone in the ongoing expansion of the investment team for The People’s Pension, which has nearly doubled in size in just over a year”.
He added: “Their expertise will enable us to ensure we get the best value for our seven million members in an area which presents an exciting opportunity.”
External managers
In February, the master trust published a report highlighting that while pension funds are encouraged to invest in private markets to boost the local economy, the investment delivers “little” additional value at current fee levels.
Through its research, the provider found that investing 10% of all projected assets in private markets via external managers by 2030 could cost pension funds and savers as much as £1.5bn (€1.8bn) per year in fees.
Instead, it suggested bringing fund selection and management in-house and using successful co-investment programmes could reduce total costs by more than 60%, or nearly £1bn.
At the time, Mikulskis said the “best value approach to investing in private markets is for larger funds to develop appropriate skills and scale to access private markets investments in optimal ways – this might be through direct ownership, co-investment and not just through funds”.
Read the digital edition of IPE’s latest magazine
No comments yet