WTW and Carne Group are launching a private equity Long-Term Asset Fund (LTAF).
It is expected that LifeSight, WTW’s master trust, will invest into this FCA-approved fund, after the master trust committed to allocate up to 5 per cent of its equity defiant into private equity.
The new fund — CG WTW Private Equity Access LTAF — will offer institutional and professional investors exposure to private equity primarily through co-investments, allowing them to invest in a range of opportunities. WTW said the fund has approximately $850m of client interest to date, from across Europe.
This is the first private capital evergreen, semi-liquid LTAF launched by WTW. It says further solutions will follow for investors across the UK, Europe and internationally. WTW has a successful track record of investing in private equity, for its institutional client base.
WTW believes that private equity investments offer a way to help savers maximise long-term returns from private markets, and an obvious place for long-term illiquid DC asset strategies to start.
The launch of the new private equity LTAF supports broader industry initiatives to better align the long-term investment needs of many end investors, including DC pension savers, and invest into private equity assets that have historically been difficult for DC and private investors to access.
Carne Group is a European third-party management company that providers fund regulation and governance services for asset managers.
WTW head of private market solutions Ben Leach says: “We look forward to seeing the benefits this will bring to end savers looking to grow their wealth through allocations to the asset class.”
Carne chief business development officer Mark Stockley says: “Carne and WTW’s LTAF represents a significant milestone in the opening up of private equity to UK pension savers. We’re delighted that Carne continues to be the partner of choice for bringing these innovative products to market.”
Macfarlanes investment management partner Lora Froud adds: “Having been heavily involved in designing the LTAF framework, Macfarlanes is pleased to have acted as a legal adviser to WTW and Carne on this fund launch. Exposure to private equity will hopefully improve returns and diversification for members and reduce volatility in their portfolios.”
