Private equity fund of funds manager, Pantheon, has received further capital from one of its long-standing clients, Illinois Municipal Retirement Fund. It had previously been managing North America-focused investments on behalf of the pension fund and the mandate has now been extended with new capital awarded for Europe-focused investments. The mandate will focus on buyout, venture capital and growth funds.
Pantheon manages a number of separate account mandates on behalf of investors in both Europe and North America, including German public pension fund, Bavarian Chamber of Supply, and State Universities Retirement System of Illinois. Pantheon is also actively investing from its comingled fund of funds vehicles at present, including Pantheon Europe Fund VII and Pantheon USA Fund IX, which both held final closes in December 2012.
Separate accounts are of growing importance to the relationship between investors and fund of funds managers in what is a challenging environment for raising capital for comingled vehicles. Investors are attracted to such arrangements for the concessions received in terms of fees, the flexibility of the arrangements and the greater level of control over investments afforded.
Other recent mandates awarded include a mandate won by Mesirow Financial Private Equity from Cook County Pension Plan, in which the manager will receive $150mn each year for the next five years from the pension fund, to invest in a variety of private equity funds. Furthermore, New York State Common Retirement Fund awarded a $250mn mandate to Farol Capital Management, which will be invested in co-investments alongside emerging managers.