Joint Ventures in the Pension Industry: The PGGM/Alpinvest Case

ICPM Seminar "Designing and Implementing Successful Collaborative Strategies for Pension Funds", October 21-22, 2008

17 Pages Posted: 19 Dec 2008

See all articles by Else Bos

Else Bos

PGGM Investments

Alfred Slager

Tilburg University - TIAS School for Business and Society

Date Written: December 19, 2008

Abstract

AlpInvest was created in 1999 as a joint venture between Dutch pension funds ABP and PGGM to create a strong platform for their private equity investments This case study examines the strategic rationale for setting up this private equity joint venture, and evaluates the pros and cons. We identify four criteria to create a successful joint venture in the pension fund industry: a joint venture whose business is close to the core competences of the pension fund, reduction of overlap in activities of shareholders and joint venture, shareholders with similar goals from the start, and a joint venture that is based on a stable growth business. Managing these issues is complex; the joint venture as an organizational form will therefore remain rare.

Keywords: Private Equity, investment strategy, pension fund

JEL Classification: G10, G23, G24

Suggested Citation

Bos, Else and Slager, Alfred, Joint Ventures in the Pension Industry: The PGGM/Alpinvest Case (December 19, 2008). ICPM Seminar "Designing and Implementing Successful Collaborative Strategies for Pension Funds", October 21-22, 2008 . Available at SSRN: https://ssrn.com/abstract=1318143 or http://dx.doi.org/10.2139/ssrn.1318143

Else Bos

PGGM Investments ( email )

Utrechtseweg 44
P.O.Box 117
Zeist, 3700 AC
Netherlands

Alfred Slager (Contact Author)

Tilburg University - TIAS School for Business and Society ( email )

Warandelaan 2
TIAS Building
Tilburg, Noord Brabant 5037 AB
Netherlands

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