The eight old pension funds that are subject to the pension arrangement are consolidating their overseas investment activity through specialized investment management companies. Sources inform ''Globes'' that old pension funds (founded before January 1, 1995) recently decided to increase their investment in private equity funds by $150 million as part of this strategy. Hamilton Lane Advisors LLC, one of the world’s leading private equity management companies, will manage this investment.
Hamilton Lane already manages $50 million in private equity investments for old pension funds. The additional investment will be channeled to top international investment funds.
The old pension funds’ policy to invest overseas is part of a broader trend of diversification of risk by Israeli institutional investors, which are diverting increasingly large amounts of money overseas to reduce their geographical and political risk. The eight old pension funds in the pension fund arrangement, managed by Ministry of Finance budget department deputy director Yael Andoran, were operationally consolidated in 2006, although they remain separate entities. The eight old pension funds are, in aggregate, the largest institutional investor in Israel.
Hamilton Lane manages $70 billion in assets. The company opened an office in Israel a few weeks ago.
Published by Globes [online], Israel business news - www.globes.co.il - on June 11, 2007
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