Stockholm (NordSIP) AP2, Sweden’s Second AP pension fund with SEK 300 billion in AUM, has invested USD 50 million in The Rise Fund, a private equity fund managed by TPG Growth, the global growth equity and middle market buyout platform of TPG, the global alternative asset management firm.
As one of Scandinavia’s largest pension funds invested in virtually every asset class across the entire world and as one of five buffer funds within the Swedish pension system, AP2 is tasked with maximizing the long-term return at low risk on Swedish pension assets by the Swedish government. The Fund is tasked with maintaining consistent pension levels, even or especially during periods affected by economic downturns or peak retirement. Its strategic management model includes long-term forecasts covering demographic, socio-economic and capital-market developments.
The Rise Fund, which is aligned with the UN Sustainable Development Goals and is committed to achieving quantifiably positive social and environmental outcomes alongside competitive financial returns, employs a strategy grounded in the belief in the central role that can be played by private firms in tackling global social challenges. As such, the UN SDG objectives, it believes, present the opportunity for firms to make an impact through the investor contributions.
“The idea of impact investing is not new, but what is new and unique about this strategy is that The Rise Fund is relying on independent research to measure the positive outcomes in financial terms,” AP2’s CEO Eva Halvarsson said in a press release Friday (June 2). “ We are pleased to be able to undertake this investment since it is entirely in keeping with our mandate, which is both to maximise returns and to take ethical and environmental criteria into consideration. Through our sustainable development activities and investments we make, the fund contributes in various ways towards the UN’s Sustainable Development Goals, and we try to be actively involved in these goals.”
Specifically, the Rise Fund measures the extent of the tangible impact of a potential investment during its investment cycle in conjunction with impact outcomes defined by the UN SDGs. Its impact assessment methodology was developed in cooperation with The Bridgespan Group, the leading non-profit advisor and resource for mission-driven organizations, philanthropists, and investors.
AP2’s decision to invest in The Rise Fund was determined primarily by the importance the latter attributes to using independent information to measure impact and the global reach of TPG.