PGB Pensioendiensten (Pension Services) and Aberdeen Standard Investments (ASI) have announced they will work closely together to invest in small and medium sized enterprises in Europe on behalf of Pensioenfonds PGB.
The co-operation entails a five year €500 million private equity program that will have the objective of creating value through investing with managers who focus on operating improvements, job creation, Environmental, Social and Governance (ESG) issues and other responsible investment strategies.
Investing in business growth
With this strategy, PGB Pensioendiensten (hereafter PGB) will focus on contributing to growth and development of companies across Europe. This can take the form of guiding international expansion, recruiting external management to assist with the growth strategy and expanding the range of products and services offered.
Dick Tol, Senior Portfolio Manager Private Equity at PGB Pensioendiensten, said: “For large private equity funds, financial leverage is an important contributor to gain high returns. PGB is targeting a more hands-on approach where the majority of the return is generated by growth. The PGB private equity team will closely monitor the job creation and turnover growth in every company”
Mark Nicolson, Senior Investment Director at Aberdeen Standard Investments, said: “We are seeing ever more significant moves by lower middle market private equity managers in Europe to embrace responsible investing alongside producing attractive investment returns for their investors. We believe that this mandate can deliver these strong returns for PGB and also help to drive further improvements in responsible investing in small and medium sized companies in Europe.”
Co-operation for the long term future
After an extensive search, PGB selected ASI to manage this program. ASI’s experienced team and extensive network across Europe will provide PGB with the capacity and experience to assess a wide range of investment opportunities. This will lead to a broadly diversified portfolio of private equity funds. Both PGB and ASI will judge whether the cost structure in any fund commitment made is appropriate for the targeted investment outcome and the services delivered.
In the lower and middle market arena, excess returns can be achieved by growing companies in a responsible way. With this program, PGB expects to contribute to companies that have a positive impact in creating a sustainable and better environment. Responsible investment criteria and climate policies will be part of every investment decision. PGB and ASI will work together to have companies in the portfolio report on a/o (renewable) energy use, emissions, environmental policies, anti-corruption measures and diversity. Every company in the portfolio will be tracked and assessed on whether it contributes to reaching the UN Sustainable Development Goals.
Yorick Groen, Portfolio Manager Private Equity at PGB Pensioendiensten, said: “PGB has a long term focus in mind with this program. We aim for a long lasting cooperation with ASI. The choice of a like-minded partner is essential for the success of the program. ASI not only shares our strategic view on the European private equity market, but also our focus on costs and responsible investing.”
Stewart Hay, Global Head of Private Markets Client Strategies at Aberdeen Standard Investments, said: “PGB conducted a very thorough and professional due diligence process. We are obviously delighted to have been selected by PGB for this exciting and important opportunity. ASI manages tailored solutions for a number of the world’s largest pension plans and we are honoured to have been selected to work with PGB on this mandate.”
|Pensioenfonds PGB||Aberdeen Standard Investments|
|Ans Bouwmans||James Thorneley|
|+31 20 753 29 56||+44 20074636323|
PGB was established in 1953 by employers and employees in the graphic arts industry. Since then, several other business sectors have affiliated themselves to us.
About PGB Pensioendiensten
PGB Pensioendiensten is the dedicated fiduciary manager and administrator for Pensioenfonds PGB.
About Aberdeen Standard Investments
- Aberdeen Standard Investments (ASI) is a leading global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
- With over 1,000 investment professionals we manage US$735.5 billion (£557.1 billion)** of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which they invest.
- We are high-conviction; long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance. We are resolute in our commitment to active asset management.
- ASI is the asset management business of Standard Life Aberdeen plc, one of the world’s largest investment companies.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
**as at 30 June 2018
The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction.
This communication is available for distribution by the following Aberdeen Asset Management affiliate:
The United Kingdom by Aberdeen Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419.