Specific directive to invest in PE
Over 20 Years of experience investing in private equity
AP6 invests together with selected managers in different segments and builds long-term relationships. Since its inception in 1996 AP6 has contributed SEK 66.7 billion to the pension assets of the Swedish public. AP6’s fund assets has grown from SEK 10.4 billion to SEK 77.1 billion at the end of 2024.
AP6 has generated a positive net profit every year for the past 13 years.
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New Chairman appointed to the Sixth Swedish National Pension Fund
Learn more: New Chairman appointed to the Sixth Swedish National Pension FundThe government has appointed Jan Sinclair as the new Chairman of the Board for the Sixth Swedish National Pension Fund. Catrina Ingelstam, outgoing Chairman of the Board for the Sixth Swedish National Pension Fund, has been appointed by the government as a board member of the Second Swedish National Pension…
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Positive return of 9.0 percent for 2024
Learn more: Positive return of 9.0 percent for 2024With the support of a cautiously better transaction market, AP6 created a positive return of 9.0 percent for 2024. AP6 reports a positive net result after currency hedging of SEK 6.4 billion, which increased the managed capital to SEK 77.1 billion. AP6’s average five-year return amounted to 15.5 percent, which…
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The Government wants to modernize the AP Funds
Learn more: The Government wants to modernize the AP FundsThe Sixth Swedish National Pension Fund (AP6), according to the proposal, is to be incorporated with the Second Swedish National Pension Fund (AP2), which after the merger is given increased opportunities to invest in unlisted assets to provide room to utilize the skills obtained by AP6. The Pension group has…
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Information regarding the review of the Swedish buffer fund system
Learn more: Information regarding the review of the Swedish buffer fund systemThe review contains of four proposals that are proposed to be subject to further handling by the owner and the political process. In summary, the proposals concerning AP6 are about “Better utilization of the Sixth Swedish National Pension Fund’s specialist expertise in high-return unlisted shares”.
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Consolidation during a challenging year
Learn more: Consolidation during a challenging yearIn a year such as 2023, which was interspersed with various challenges, AP6 is reporting positive net earnings of SEK 2.1 billion. Managed assets increased and amount to SEK 70.7 billion. AP6’s five-year return is 15.3 percent, exceeding the target of 11.4 percent. AP6 has generated positive net earnings every…
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AP6’s human rights round-table
Learn more: AP6’s human rights round-tableThe event held in Stockholm in September sought to gather GP representatives from AP6’s portfolio to explore social sustainability factors’ increased importance in private equity investing and sharing practical approaches to human rights due diligence. The level of engagement and the high interest in the topic provided for great discussions…
Event / Article
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AP6’s human rights round-table
Read more: AP6’s human rights round-tableThe event held in Stockholm in September sought to gather GP representatives from AP6’s portfolio to explore social sustainability factors’ increased importance in private equity investing and sharing practical approaches to human rights due diligence. The level of engagement and the high interest in the topic provided for great discussions and opportunities to advance industry…
ABOUT US
AP6 is part of the pension system of the Swedish state
AP6’s assignment is to manage funds entrusted to it in the private equity market (unlisted assets) according to the law that governs the Fund’s operations, the Sixth Swedish National Pension Fund Act (2000:193). Since its inception in 1996 AP6 has contributed SEK 66.7 billion to the pension assets of the Swedish public. AP6’s fund assets has grown from SEK 10.4 billion to SEK 77.1 billion at the end of 2024.
AP6 has generated a positive net profit every year for the past 13 years.
How AP6 invests
Collective expertise based on common goals
Investment
Unique specialist expertise built up over more than two decades of investing in unlisted assets.
A broad network of contacts and long-term relationships with partners.
AP6’s own models and methods for evaluating potential investments.
Sustainability
Sustainability is integrated in all investment activities.
Carefully developed frameworks and tools are used for evaluation prior to an investment and during the ownership phase.
Resources are allocated on an ongoing basis depending on issues and needs identified.
Financial
As a closed-end fund, AP6 has developed detailed models to forecast and manage liquidity.
Experts from the Financial unit participate in the investment process to ensure transaction quality etc.
Legal
The Legal unit works with the investment team during the evaluation phase.
Prioritised topics can be identified early on in the process in preparation for contract negotiations.
Long-term investment strategy
Long investment horizon with integrated sustainability
01.
Investment process
Fund investment decisions are preceded by an extensive process that can take several years. In co-investments, business is generated based in part on a partner perspective and in part on a company perspective.
02.
Ownership phase
The ownership phase is an opportunity to build knowledge and understanding, and to have an impact by monitoring and follow-up activities. AP6’s ESG assessment model Influence is exercised through cooperation, requirements and feedback.
03.
Divestment
As funds and co-investors realise holdings, disbursements to investors take place. The strategy is to stay with fund partners and co-investors during the divestment process.
Sustainability
For AP6, responsible investments and sustainability are prerequisites for delivering a long-term high return. Sustainable development is fundamental to the well-being of future generations and for generating an economic return to future pensioners. Since 2013, sustainability has been an integral part of AP6’s investing activities, e.g. as a component of the review and follow-up on investments. As an investor in various types of businesses, sectors and geographic locations, it is necessary to have a broad approach to sustainability, based on international agreements on human rights, labour rights, the environment and anti-corruption. AP6’s responsible investment targets are based
on the organisation’s role as an indirect investor in
private equity and applies to the entire portfolio.
1. DUE DILIGENCE
– Evaluation of sustainability: Enviroinement, labor rights, human rights, anti- corruption.
– Scope depends on the type of investment, geographic location, etc.
– Internal or external resources.
2. INVESTMENT DECISION
Sustainability is always part of the supporting documenation used for decisions by the Allocation Committee and Board of Directors
3. INVESTMENT AGREEMENT
– Standardized writing regarding sustainability in fund agreements.
– Integration of exclusion criteria in the fund agreement (funds).
– Inclusion in the acquisition documentation, as needed (co-investments)
4. OWNERSHIP
– Annual assesment and review.
– Requirements on governing documents & processes to improve and develop them,
- On the agendas of the Board and fund advisory bodies.
- Meetings with companies.
5. EXIT
– Sustainability is becoming increasingly important when settling in private equity. The main owner (eg the fund company) is responsible for and carries out divestments of companies.
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Distribution of the year-end report typically occurs at the end of February or beginning of March.
Contact us
Find answers about investments, sustainability and other questions
To get in touch with various departments, seek answers to specific questions, information regarding Public access to information and secrecy, etc.