London Pensions Fund Authority

LPFA creates LGPS alternative credit manager framework

The London Pensions Fund Authority (LPFA) announced today that it has created a national framework that will allow other Local Government Pension Schemes (LGPS) to select from four alternative credit managers without having to complete a full European tender process.
The framework is made up of Apollo Capital Management, Ares Management, Babson Capital and GSO Capital, and will remain operational until February 2019.
The successful managers were selected after a thorough tender process, which saw approximately 35 managers shortlisted to four.
Following the creating of this framework, LPFA selected Apollo Capital Management as its alternative credit manager.
Subject to final documentation, Apollo will oversee the LPFA’s £150 million allocation to alternative credit, including, distressed debt, real estate debt, leveraged senior loans and private lending.
The mandate will be unconstrained and target absolute returns by investing across a number of higher yielding debt markets. It is expected that the majority of investments will be made within developed markets; however, there is also scope for allocations to emerging markets.

N.B. – The text does not bind the staff of LMFInternational. Only the companies, organizations and associations which sign the press release and which are clearly indicated in the title of the text, are responsible for its information and contents.