28 November, 2018

Investment activities

Specialization and long-term relationships in private equity are the foundation of our strategy

AP6 is an experienced organization entirely dedicated to investing in, and managing, private equity. AP6 possesses unique expertise when it comes to making both fund investments and co-investments in private equity. It makes AP6 a relevant partner for many of the most attractive fund management teams and the most interesting co-investments. It has resulted in the creation of a portfolio consisting of quality fund holdings and co-investments.

Strategic Portfolio

The overall aim is to, over time, construct a well-diversified portfolio with a steady rate of investment over time and geographic diversification. AP6 is continuously striving to identify the optimal combination of fund investments and co-investments when creating a strategic portfolio where sustainability has been fully integrated into the business. The investment organization works systematically, selectively and proactively to gain access to the very best funds in each segment, along with the best co-investments. New fund management teams to partner with are carefully selected based on the criteria that the relationship should benefit the entire investment business and result in more opportunities for making co-investments.

Fund Investments

The fund investment team follows a long-term strategy of building a geographically diversified portfolio allocated across the buyout, venture, growth and secondaries segments. A great deal of focus is on establishing close, in-depth collaboration with the teams managing each fund where AP6 has made a capital commitment. It takes time to build trust. The foundation for trust is always, however, professionalism and mutual respect for each other’s expertise. All of these aspects are fundamental to AP6 gaining access to attractive co-investments.
Many individual meetings are held on a continual basis with fund management teams to discuss such things as the market situation, development of the portfolio companies and work with sustainability.
AP6 has fund management companies in its portfolio that it has been working with for more than 20 years. The organization has, thanks to its extensive expertise and wide network, been successful in gaining access to fund managers ranked among the best in their respective investment areas.

Co-investments

One critical prerequisite for gaining access to attractive co-investments is the underlying close ties with fund management teams where AP6 has made capital commitments. It’s all about mutual trust that is based on expertise and experience. Thanks to this conscientious effort over time, AP6 has succeeded in establishing trust in the organization’s ability to successfully make co-investments. Co-investments are in general to be regarded as minority investments, which ideally are made together with existing funds where AP6 has committed capital.