AP3 makes biggest secondaries commitment yet

The pension committed $50m to Newbury's Fund IV, which closed last week on $1.4bn.

Swedish pension fund AP Fonden 3 has invested $50 million in Newbury Partners‘ latest secondaries fund, double the commitment it made last time around.

The commitment to Newbury Equity Partners IV, which closed last week on its $1.4 billion hard cap after nine months in the market, was made in 2017 but only revealed on Tuesday with the publication of an updated list of private equity holdings on the pension’s website.

It is the largest commitment yet made by AP3 to a secondaries manager, the list reveals, it having also invested in funds managed by HQ Capital, Goldman Sachs Asset Management and Verdane Capital, among others.

AP3 committed $25 million to Newbury Partners II, which raised $1.02 billion by final close in October 2010 after eleven months in the market.

Newbury Partners specialises in acquiring limited partnership stakes in buyout, venture capital, special situations, mezzanine funds and funds of funds. It focuses on small and mid-market interests, targeting transactions up to $250 million in value with no minimum deal size.

APF3 has SKr345.24 billion ($42.1 billion; €34.3 billion) in assets under management, according to data from Private Equity International, with 20 percent allocated to alternatives. 

In July 2017, Swedish state pensions scrapped restrictions that meant they could not invest more than 5 percent of their total assets in unlisted investments. They are now allowed to allocate up to 40 percent in private equity, real estate and infrastructure.