Pension investment services

Tender description

The Pension Fund of the London Borough of Newham invites proposals for the management of an investment in Private Corporate Debt (Direct Lending) through a pooled fund vehicle. The Pension Fund of the London Borough of Newham does not wish to be contacted during the tender process. Please contact bfinance for any queries regarding the tender. Asset Class: Private Corporate Debt (Direct Lending) Size of mandate: Approx. 110 000 000 GBP to be invested with 1 or 2 manager(s). — Pooled Fund structure; — Minimum Fund size 400 000 000 GBP; — GBP share class preferred; — Absolute return in terms of target NET IRR of 6 % to 8 %+ (net of fees); — Looking for LIBOR +4 % to 5 %; — Minimum hurdle of 4 %; — Investment Horizon of 3-5 years investment period and total fund life 5-10 years. Type of management: — Buy-and-hold of corporate private debt. Allocation: — Primarily senior debt focus; — Preference for 1 global manager, but the client is willing to consider two managers (1 focused on the US and 1 on Europe); — Limited cov. light deals; — No specific requirements in terms of duration/maturity of the loans; — The Client has a preference to represent no more than 20 % of Fund commitments. Portfolio Diversification: — Broadly diversified by asset types and sectors, concentration limits relevant to specific type of private debt. Minimum Requirements: — Bidders are required to be a regulated entity (FCA or equivalent); — The Client would like to see demonstrable experience in the strategy, asset class, whether this is at the firm level or attributable to members of the investment team from prior firms; — Fund should be a minimum size of 400 000 000 GBP; — Unlevered fund only; — At least one fund post investment period with some realizations; — Preference for managers with a UK office or at least a dedicated UK Client Services; — Quarterly reports, quarterly investor level capital statements, annual audited financial statements for the fund; — Multi-managers (fund of funds) will not be considered.