RPMI Railpen has committed to a new joint venture vehicle, Capital Constellation, to provide initial capital to breakthrough emerging private equity and alternatives managers.
RPMI Railpen along with the Alaska Permanent Fund Corporation (APFC) and The Public Institution for Social Security of Kuwait (PIFSS) have committed a combined total of USD700 million to the venture which will be advised by Wafra Investment Advisory Group Inc (Wafra).
Capital Constellation combines the expertise and capital resources of three of the world’s leading institutional investors with Wafra’s industry and management expertise to identify and partner with talented emerging alternatives managers. The new venture will provide the most promising managers with reliable and sustainable capital funding and strategic support, and enable them to attract follow-on investment from other asset owners.
In doing so, Capital Constellation is expected to generate consistent and sustainable returns for RPMI Railpen and its members.
Paul Bishop, Investment Director, RPMI Railpen, says: “We believe Capital Constellation provides us with unmatched access to the next generation of successful alternatives managers, enabling us to deliver long term returns that will help us achieve our mission to pay members’ pensions securely, affordably and sustainably.”
Julian Cripps, Managing Director of RPMI Railpen, adds: “As a major global institutional investor, we are committed to using the size of our assets to invest wisely and influentially. We are not afraid to think innovatively and act boldly, as this initiative demonstrates.”
Capital Constellation expects to complete its first strategic partnership with Astra Capital Management (Astra), a private equity manager specialising in growth buyouts in the communications and technology services industries. Astra’s founders have over 100 years of industry, investment and operating experience in the communications and technology industries, and have previously worked with premier institutions that have a long history of successful buyout investing in the sector.
