PITTSBURGH, May 17, 2022
/PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader
in active, responsible investing, has been awarded $1 billion private equity mandate from BT Pension
Scheme (BTPS), one of the UK's largest occupational pension
schemes.
The mandate, called Horizon III, will be managed by Hermes GPE
LLP, a specialist global private equity investor and wholly owned
subsidiary of Federated Hermes, and will be invested over three
years.
Horizon III will pursue the global thematically diversified
strategy through a proven 50/50 funds and direct co-investment
model established following similarly sized investment allocations
managed for BTPS — Horizon I (2015) and Horizon II (2018).
Hermes GPE has invested more than $11
billion across almost 300 funds and more than 260
co-investments. Its thematic investment strategy focuses on
generating risk-adjusted returns by exploiting the opportunities
created by four global economic megatrends largely independent of
underlying economic cycles: the net zero economy; accelerating
technological innovation; demographic and societal change; and the
global center of gravity shift. This approach has to date delivered
consistent risk-adjusted returns for BTPS.
J. Christopher Donahue,
president and chief executive officer at Federated Hermes
commented: "BTPS is an important customer across our
private markets platform and the Horizon III mandate demonstrates
BTPS's continued confidence in the ability of Federated Hermes to
deliver its investment objectives in a very competitive global
private equity market.
"As Federated Hermes continues to invest in its private markets
business, which includes private equity, real estate, private debt
and infrastructure, we recognize its importance to customers around
the globe."
Morten Nilsson, chief
executive officer for BT Pension Scheme Management commented:
"The Horizon mandates have delivered consistent, sustainable
returns for the Scheme throughout market cycles. Horizon III
demonstrates our continued commitment to this asset class with
investments that meet our long-term sustainability goals."
Peter Gale, chief investment
officer and head of Hermes GPE, commented: "We have been
constructing private equity portfolios for BTPS since the 2000s,
which showcases our pension scheme roots. Our dynamic investment
approach combines top-down macroeconomic considerations with
bottom-up detailed research that clearly resonates with BTPS and we
work closely with its investment team to ensure private equity
plays an effective role in the Scheme's asset allocation
strategy."
Similar to prior investments by BTPS and other investors, the
value of investments can vary over time due to additional
investment, redemptions or market fluctuations in the value of
portfolio holdings over time.
Notes to editors
Federated Hermes, Inc. is a global leader in active,
responsible investment management, with $631.1 billion in assets under management. We
deliver investment solutions that help investors target a broad
range of outcomes and provide equity, fixed-income,
alternative/private markets, multi-asset and liquidity management
strategies to more than 11,000 institutions and intermediaries
worldwide. Our clients include corporations, government entities,
insurance companies, foundations and endowments, banks and
broker/dealers. At Federated Hermes, responsibility is central to
our client relationships, our long-term perspective and our
fiduciary mindset. It's part of our heritage and the foundation of
our future. Headquartered in Pittsburgh, Federated Hermes has nearly 2,000
employees in London, New York, Boston and offices worldwide. For more
information, visit FederatedHermes.com.
Hermes GPE is the private equity arm of Federated
Hermes. We are an active and long-time investor in global private
equity, with a track record which spans over 30 years. We focus on
fund investments and co-investments in mid-market buyouts and
growth businesses, currently managing c$6bn of assets via managed accounts, pooled
funds and side cars. We work in partnership with a wide range of
Limited Partners and General Partners across the globe, from
offices in London, New York and Singapore. We employ a forward looking global
thematic investment strategy, backing managers and fast-growing
companies that operate in sectors set to benefit most from trends
that are reshaping global economic activity, using a
well-established and disciplined investment process.
BT Pension Scheme is one of the UK's largest
corporate defined benefit pension schemes with assets of £57
billion, (as of 30 June, 2021) and
274,292 scheme members. For more information, visit btps.co.uk.
This press release is issued and approved by BT Pension
Scheme Limited of 1 America Square, 17 Crosswall, London EC3N 2LB. This document is not an offer
to sell or an invitation to apply for any product or service of
BTPSM Limited.
Certain statements in this press release, such as those
related to growth opportunities for investing in Federated Hermes'
private markets business constitute forward-looking statements,
which involve known and unknown risks, uncertainties and other
factors that may cause the actual results, levels of activity,
performance or achievements of the company, or industry results, to
be materially different from any future results, levels of
activity, performance or achievements expressed or implied by such
forward-looking statements. Other risks and uncertainties
include those discussed in the company's annual and quarterly
reports as filed with the Securities and Exchange Commission. As a
result, no assurance can be given as to future results, levels of
activity, performance or achievements, and neither the company nor
any other person assumes responsibility for the accuracy and
completeness of such statements in the future.
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SOURCE Federated Hermes, Inc.