Eskom Pension and Provident Fund diversified into VC, with an initial commitment of $100M.
The fund is linked to South Africa's state-owned power company Eskom Holdings. Eskom's move to invest in VC funds comes amidst its push to reduce dependence on traditional investments. The fund's deputy chief investment officer Phathutshedzo Mabogo thinks that PE and VC investments "could deliver decent returns without introducing too much risk in the total portfolio."
Eskom Pension and Provident Fund has over $10B worth of assets under management (AUM).
- Two-thirds of its current AUM is allocated to stocks, inflation-linked debt, property, and nominal bonds.
- Current private equity investments account for between 5% and 6% of its net asset value.
South Africa amended its pension legislation to allow domestic funds to invest nearly 45% in offshore assets.
- Eskom currently has 30% of its assets abroad, giving it sufficient buffer to invest in VC funds across North America and Europe.
