UK superfund Clara Pensions has announced plans to launch a new private markets investment vehicle, confirming that it expects to invest 30-35 per cent of Clara's assets into private markets as the superfund grows.

The Clara Private Markets Vehicle was created in conjunction with Van Lanschot Kempen Group, who will manage the fund, and is expected to be registered soon.

It will invest across a range of private markets assets, focusing initially on private credit, before considering other assets such as infrastructure debt and real estate debt over the longer term.

In total, the group said it is looking to allocate around 30-35 per cent of Clara assets to private markets, with a "significant" proportion of these invested in the UK economy.

Van Lanschot Kempen Investment Management UK chief executive officer, Andre Keijsers, highlighted the launch of the fund as "another first for the superfunds industry, enabling access to a professionally managed, well-diversified private markets portfolio at scale".

And this new vehicle is expected to prove beneficial for schemes looking to use the superfund, as Clara explained that, while pension schemes typically spend between five and 10 years inside Clara before transferring to an insurer, the private markets vehicle has been designed to invest beyond this time horizon.

This means that schemes that join Clara may be able to transfer in their existing illiquid assets, rather than being forced sellers as would be the case when transferring cash and gilts to an insurer.

Clara also confirmed that, when schemes subsequently exit to join an insurer, the units in the private markets vehicle can be reallocated to the existing and incoming sections within Clara, giving the superfund the ability to invest with a multi-decade time horizon.

Commenting on the news, Clara Pensions chief executive officer, Simon True, said: “Our mission at Clara continues to be to improve member outcomes and provide a secure bridge to an insured future.

"We believe that a significant, well-managed private markets portfolio within our investment strategy delivers on these aims, and can also play a significant role in driving economic growth and productivity in the UK.

“Clara’s role as a superfund has always supported the UK economy by taking away the cost and distraction of legacy pension schemes, allowing British businesses to focus on their core operations safe in the knowledge that their members are on a secure journey to buyout.

"By adding private markets investment, we can now further increase our contribution to the UK economy.”

Clara also announced that it is currently in "active discussions" with a large number of schemes with total assets in excess of £10bn, as interest in transacting remains "high".

This article originally appeared on our sister title, PensionsAge.

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