Summary
The purpose of the Pool is to build a diversified portfolio of global investments in private equity, i.e. equity investments in non-listed companies. The purposes of the Pool are to acquire and manage globally diversified interests in private equity Primary Investments, amongst which also Co-Investments, Secondary Investments and Mezzanine Investments, which focus on, but are not limited to, buyouts, growth equity and venture capital.
The performance objective is a minimum 10% absolute net IRR (internal rate of return) measured over a longer investment horizon before the deduction of the APG AM management fee. The longer-term objective is to outperform the benchmark in IRR and PME+ (Public Market Equivalent plus) terms. The intent is to measure performance over longer-terms at 5 years, 10 years and Since Inception (SI).
Furthermore, an expected outperformance (alpha) of 200-400 bps above the MSCI All Country World Investable Market Index (currency adjusted).
Over the term of the Pool, the average total annual APG AM Manager and external fund managers private equity management fees, and other private equity-related costs (excluding performance fees) should compare favorably (lowest 25th percentile) versus its global institutional peers with comparable investment programs.