Gebouw PGGM

Private Equity

PGGM is a major global private equity investor with a long and established track record. Together with top-tier private equity fund managers we invest globally in a large variety of private companies.

Private equity is an important investment category for PGGM to realize a sustainable and valuable pension for participants of our pension fund clients, including our main client PFZW. Private equity tends to generate higher returns than public markets with lower volatility throughout time and is considered as an asset category with lower liquidity. Typically, the time horizon for a private equity investment is 10+ years. PGGM’s private equity objective is to outperform the public markets by ~2.5%, which we have exceeded historically.

While the private equity portfolio is well diversified, the majority of investments are in developed countries, primarily the US and Western Europe, with a focus on buyout investments. The underlying investments in the portfolio are broadly diversified across sectors, with particularly significant exposure to Information Technology, Industrials, Consumer Discretionary, Health Care and Financials. Note, however, that we are in principle sector agnostic.

23 bn (EUR) assets

private equity portfolio as at December 202

3 bn (EUR) committed yearly

in funds, co-investments and secondaries

17 % average net return

over the past 10 year

125 More than 125

Limited Partner Advisory council seats at our relationship funds

History


PGGM was an early investor in private equity, starting in 1983. From 2000 until 2011, it outsourced its private equity investments to AlpInvest, a joint venture between APG and PGGM. In 2009, PGGM decided to build up its in-house private equity team again and the first internal PGGM Private Equity Fund was launched in 2010. In 2011, PGGM sold its interest in AlpInvest to the Carlyle Group. Currently, AlpInvest is still committing €200m per year to lower US mid-market private equity funds (funds with a target size up to $2bn) on behalf of PGGM. Please refer to the AlpInvest website for more information.

Q4 2022 Geography Split (002)

Private Equity per Geography

Industrydef

Private Equity per Industry

Strategydef

Private Equity per Strategy

(Data as per December 2022)

ESG reporting

We have also developed an ESG reporting template, in collaboration with APG, MN and AlpInvest. This helps PGGM understand and monitor the ESG implementation at the fund and portfolio company level. PGGM PE releases an ESG report on an annual basis. Please refer to the respective reports of 2019, 2020, 2021 and 2022.

The long term objective of the PGGM Private Equity (“PGGM PE”) team is to generate attractive risk-adjusted net returns for its clients equal to or above the relevant benchmark, corresponding to returns of 2.5% or more above public markets.

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In this section we provide more information on the composition of the PGGM Private Equity team.

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PGGM is investing in or alongside top-tier private equity firms, please find an overview of the investments that have been made during 2020 below. Please refer to PFZW’s transparency list for a complete overview of their private equity investments.

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The long term objective of the PGGM Private Equity (“PGGM PE”) team is to generate attractive risk-adjusted net returns for its clients equal to or above the relevant benchmark, corresponding to returns of 2.5% or more above public markets.

More