Aberdeen Standard Investment (ASI) has unveiled a 'one-stop' private market fund to give investors exposure to a global mix of private equity, infrastructure, real estate and private credit.
The Global Private Markets Fund (GPMF) is billed as ASI's first comprehensive private markets solution for investors since Aberdeen Asset Management and Standard Life Investments merged last year.
GPMF will target a return of 9-12% per year (net of fees) over a rolling seven-year period.
The fund has launched with £138 mln (€155 mln) and will be managed by a ten-strong team based in Edinburgh, London, Boston and Singapore, headed by Nalaka De Silva who has 15 years industry experience.
Peter McKellar, global head of private equity and infrastructure equity, said: 'As Aberdeen Standard Investments, we now have the breadth and depth of expertise that allows us to offer a fund across the spectrum of private markets. We can also manage asset allocation to ensure we are targeting the best opportunities at any given time – with a robust governance framework which takes the burden away from investors.
Clients, McKellar said, are looking for greater access to invest in the real economy. 'As a result, investing in private markets is no longer a niche proposition and is becoming more mainstream. In this world of low-growth, private markets offer a higher target return for investors who are happy to leave their investments for a longer period with limited access, often referred to as capturing the ‘illiquidity premium’. Investing in a fund like this offers the reassurance of a team with a strong track record, insight on the ground and a robust governance framework to manage risk.
ASI added that GPMF offered investors the potential to achieve growth or meet long-term liabilities (e.g. pension payments), and was particularly suitable for institutional investors such as small to medium-sized DB schemes, DC pension plans and private banks. The fund is able to replace traditional growth assets or complement existing strategies within a portfolio.
Pictured: Peter McKellar, global head of private equity and infrastructure equity at ASI