Privately looking to make a splash
“APG has shown superb historical returns, investment scale and a focus on sustainability combined with a transition towards impact investing,” judge’s comment
WINNERS
Country |
Netherlands |
Type |
Hybrid defined benefit and defined contribution |
Members |
2,900,000 active |
AUM |
€570,000m |
Performance |
9.30% (1yr) |
In 2024, all APG’s private markets strategies focused on transitioning into impact investing, aiming to deliver measurable, positive change while unlocking growth opportunities that align with financial returns and society’s increasing demands for sustainable solutions. For APG, sustainability is not merely an ethical obligation. It represents a compelling long-term investment opportunity and has always been integral to its strategy, aligning with its fiduciary duty to manage long-term risks, generate strong financial returns and contribute to a more resilient global economy.
APG has been investing in private credit for over a decade, and in 2020, it became a stand-alone asset class. Since then, the strategy has expanded significantly, with the private credit portfolio currently standing at €8.5bn, focusing on private, illiquid, and complex segments of global credit markets
In 2023, APG’s private credit portfolio delivered a 6.5% return, with a three-year/since-inception annualised return of 6%. Over the past year, APG allocated more than €1bn to four impact funds, with no-fee co-investments, targeting themes such as climate change, sustainable food, inclusive society and circularity.
APG’s €50bn private equity programme is organised into four business verticals: primary funds, co-investments, direct ventures and secondaries. In 2023, it returned 6% in absolute terms, deploying approximately €3.3bn and closing 14 primary fund investments and 21 co-investments. The programme's 10-year annualised return of 17.5% continues to significantly outperform its benchmark, while its allocation increased from 6% to 8%.
APG’s €30bn infrastructure portfolio generated a 6% return in 2023. Following an allocation increase from 4% to 7% in 2023, the decision was made to grow the exposure to 10% in 2024. It committed over €3 billion to investments with the potential to decarbonise industries and reduce emissions. Key projects included an energy solutions provider for B2B customers in the Netherlands, a leading electric vehicle charging platform in France, the largest solar farm in the US, and the largest electricity distribution network in Australia.
STRATEGIC TAKEAWAYS
➤ Private markets focus in 2024 on transitioning to impact investing |
➤ Private credit now considered standalone asset class in portfolio |
➤ Investments in electric car charging, solar farms and electricity distribution assets in 2023-24 |
HIGHLY COMMENDED
Country |
United Kingdom |
AUM |
€44,000m |
Performance |
12.10% (1yr); |
Nest’s continued investment in the private market space means that it benefits both from illiquidity premiums and regular strong returns as well as gaining further diversification of its portfolio and of its offering to members. Nest’s investment team spent two years doing market research, learning more about the private equity world. In 2022, Nest appointed two new fund managers whose focus is on growth and middle-market deals. Nest estimates to have at least £1.5bn invested in private equity by early 2025.
Country |
France |
AUM |
€10,717m |
Performance |
5.01% (1yr) |
UMR continued to invest in private equity in 2023, with its allocation to the asset class standing at 5.5% by the end of the year. New investments were partly focused on early-stage venture capital. The year 2023 was also a good one for UMR’s private debt portfolio. Private debt funds, depending on the seniority of the instruments, were able to take advantage of rate hikes and the growing need for corporate financing to offer attractive returns with controlled levels of risk. It increased its allocation to differentiating mezzanine strategies by 8%.
Judged by
Stephan Kloess
Milan Marinkovic
Sergio Miguez
Jeroen Winkelman