RPMI Railpen and two other institutions are committing hundreds of millions of dollars to lesser known alternative investment managers.
The asset manager for the UK Railways Pension Fund along with the Alaska Permanent Fund Corporation and The Public Institution for Social Security of Kuwait have set up a joint venture called Capital Constellation and have committed $700 million (€569 billion) between them to emerging alternative investors.
Capital Constellation is advised by Wafra Investment Advisory Group, an asset manager owned by the Kuwaiti institution and based in New York with over $20 billion of assets under management or commitment.
Capital Constellation and Wafra are combining resources to identify and partner emerging alternatives managers that they consider talented and expect to make their first partnership with Washington DC-based Astra Capital Management, a private equity firm specialising in growth buyouts in the communications and technology services industries.
Paul Bishop, investment director at RPMI Railpen, said: “We believe Capital Constellation provides us with unmatched access to the next generation of successful alternatives managers, enabling us to deliver long-term returns that will help us achieve our mission to pay members’ pensions securely, affordably and sustainably.”
The founding partners of Capital Constellation together manage over $200 billion in assets.
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