RPMI Railpen, the asset manager for the UK Railways Pension Fund, has teamed up with public sector funds Alaska Permanent Fund (APFC) and Public Institution for Social Security of Kuwait (PIFSS) to create a new alternatives investment management joint venture (JV).
The JV, dubbed Capital Constellation, will offer investment capital and initial fundraising support to private equity and alternatives managers.
Constellation intends to deploy over $1.5bn in the next five years. The three founders have committed $700m to the JV.
Railpen investment director and Constellation founding board member Paul Bishop said: “We believe Constellation provides us unmatched access to the next generation of successful alternatives managers, and will be a source of long-term returns that will help us achieve our mission to pay members’ pensions securely, affordably and sustainably.”
Constellation will be advised by Wafra, a PIFSS-owned investment firm with over $20bn in assets.
Constellation has already agreed to invest $100m into Astra Capital Management, a private equity manager focusing on growth buyouts in the communications and technology services sectors.
Wafra managing director and Constellation president Daniel Adamson said: “We have already begun supporting Astra as a strategic partner across three continents, working closely with Mark, Bill, Kevin, Todd, Matt and the rest of their investment partners to help them realize their long-term goals.”