Image L-R: QIC Private Equity's Head of Europe Rune Jepsen with PenSam Head of Private Capital and Real Assets Jeppe StarupQueensland Investment Corporation (QIC) has entered a strategic partnership with one of Denmark’s largest pension funds to provide exposure to European private equity investments.
The initial DKK2.2 billion (≈ A$500 million, €300 million) mandate from PenSam will be invested over three years through both co-investments and fund commitments, with a focus on lower middle market buyouts alongside established and emerging sponsors.
QIC Private Equity Partner and Head of Europe Rune Jepsen said cyclical and structural developments in the European private equity market makes opportune timing for the PenSam partnership.
“As a long-term investor in the lower mid-market, QIC has seen a shifting landscape where traditional peer investors have migrated out of this part of the market for various reasons,” Mr Jepsen said.
“This has had a particularly pronounced effect on capital availability for emerging mid-market private equity managers, where QIC remains active on the back of a strong track record supporting new sponsors through both fund commitments and co-investments.
“This structural shift in capital availability for lower mid-market buyouts has recently been coupled with a cyclical decline in capital availability for private equity in general.
“In this context, both QIC and PenSam see a compelling opportunity in the current market, and view this as an opportune moment to launch what is expected to be a long-term strategic partnership.”
In line with QIC’s core strategy, the mandate will target control investments in high-growth companies, typically with an enterprise value of between €100 million to €1 billion.
PenSam Head of Private Capital and Real Assets Jeppe Starup said the decision to partner with QIC was premised on finding a like-minded organisation with a compelling track record in the field.
"Like PenSam, QIC is bound by the single objective of delivering investment outcomes for its clients,” Mr Starup said.
“It is of great importance to us to work with someone who shares our philosophy and where we enter as equal partners in a close collaboration with a common goal.
“This includes a strong focus on the consideration of ESG factors and long-term value creation.
“QIC has operated in the European market for over 15 years, investing into smaller unlisted companies and has proven its ability to deliver strong returns in a consistent and sustainable manner.”
QIC CEO Kylie Rampa said the partnership will not only bolster QIC’s capital base but also allow for an expansion of the local investment team in Europe.
“QIC has been represented locally in Europe since 2006 with teams in both Copenhagen and London working with and for our international clients to deliver positive outcomes,” Ms Rampa said.
“As we look to the future and the scope of opportunities available, we recognise the significant value of local capabilities and expertise on the ground to maximise these opportunities.
“We look forward to continued growth in QIC’s international presence in alignment with client demand.”
PenSam is one of the largest labour market pension funds in Denmark managing funds on behalf of workers in aged care, childcare and cleaning services, with DKK182 billion (≈ €24.2 billion) in assets under management.1
Citations
- As at December 2022: PenSam annual report 2022
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QIC is a trusted investment manager and adviser providing risk adjusted returns for the clients we serve. As one of the nation’s leading institutional investment managers, we deliver alternative real asset solutions across infrastructure, real estate, private debt, private capital, natural capital in addition to a liquid market offering for our 125 Australian and global clients. We also act as the Queensland Government’s independent investment advisor, managing a fully-funded Defined Benefit scheme and the Queensland Future Fund both of which delivers on the State’s long-term investment objectives. We have A$102.2bn in assets under management (as at 30 June 2023) and are headquartered in Brisbane, Australia, with offices in Sydney, Melbourne, New York, San Francisco and London.
Managing more than A$8.9 billion in AUM (as at 30 June 2023), we have sufficient scale to be meaningful to our partners but are not large enough to dilute our clients' investment opportunities. We invest from seed to growth stage, contributing up to A$10 million to support product development, team expansion and strategy execution with a focus on supporting local businesses developing innovative products and services.