The Eskom Pension and Provident Fund plans to expand into venture capital to reduce its dependence on traditional investments.
Bloomberg says the fund has about R185 billion worth of assets under management, with roughly two-thirds allocated to South African stocks, inflation-linked debt, property and nominal bonds.
Phathutshedzo Mabogo, deputy chief investment officer of the fund says they are about to invest in venture capital, which is a subset of private equity adding that they will start with offshore development markets like North America and Europe. We’ve committed $100 million.
Mabogo further adds that private equity and venture capital represent an area of growth that could deliver decent returns without introducing too much risk in the total portfolio.