Aberdeen Standard Investments launches one-stop Global Private Markets Fund

Edinburgh-based global asset manager Aberdeen Standard Investments has launched its first comprehensive private markets solution for investors, targeting a return of 9-12 per cent per year (net of fees) over a rolling seven year period.

The new fund will invest in a diversified global mix of private equity, infrastructure, real estate and private credit.

ASI said the Global Private Markets Fund (GPMF) harnesses the full depth and breadth of the firm’s private markets investment platform, bringing together the expertise and experience of around 380 investment professionals able to source opportunities for clients on a global scale.

The fund has launched with £138 million.

GPMF provides investors with a stake in the real economy, investing in a range of businesses and projects which play an important role in growing and sustaining regional or global economies.

They include venture capital and private companies that require growth capital; and social and economic infrastructure projects such as schools, hospitals, transport and energy assets.

The fund will also invest across a range of real estate sectors and property developments, both commercial and residential; and invest into private lending opportunities which help finance businesses and assets.

GPMF offers investors the potential to achieve growth or meet long-term liabilities (e.g. pension payments), and is particularly suitable for institutional investors such as small to medium sized DB schemes, DC pension plans and private banks. The fund is able to replace traditional growth assets or complement existing strategies within a portfolio.

The fund will be managed by a ten strong team based in Edinburgh, London, Boston and Singapore, headed by Nalaka De Silva who has 15 years industry experience.

ASI said the portfolio management team will draw on the expertise of the wider teams working in private markets and real estate thoughout ASI, based on the ground in the UK, Europe, US and Asia Pacific.

Peter McKellar, global head of private equity and infrastructure equity, said: “As Aberdeen Standard Investments, we now have the breadth and depth of expertise that allows us to offer a fund across the spectrum of private markets. We can also manage asset allocation to ensure we are targeting the best opportunities at any given time – with a robust governance framework which takes the burden away from investors. This could be especially beneficial for smaller pension schemes with less capacity to manage private market investments themselves, but also other institutional investors and private banks looking for a high level of long-term growth to meet their liabilities.

“Clients are looking for greater access to invest in the ‘real economy’. As a result, investing in private markets is no longer a niche proposition and is becoming more mainstream. In this world of low-growth, private markets offer a higher target return for investors who are happy to leave their investments for a longer period with limited access, often referred to as capturing the ‘illiquidity premium’. Investing in a fund like this offers the reassurance of a team with a strong track record, insight on the ground and a robust governance framework to manage risk.”