Dutch pension manager, Thai family office outline key co-investment strategies
The Dutch pension fund manager, overseeing around $600 billion for the Netherlands' largest pension fund ABP, approaches co-investments in two distinct forms, according to said Eric Van der Maarel, CEO of APG Asset Management Singapore.
"Firstly, we co-invest alongside partners — like INA and ADIA, as seen in our recent Indonesian toll road project,” he said at AsianInvestor's 14th Southeast Asia Investment Forum in Bangkok on November 8.
APG Asset Management
“Secondly, over the past few years, we've initiated what we call an asset owner platform, where we control the deals and invite like-minded institutions to join us.”
The primary objective of the asset owner co-investment fund is to provide exposure to global non-listed infrastructure investments across various asset styles, sectors, and regions over a long-term horizon.
Operationally, it enables APG and its partners to pursue much larger deals in the private markets than they could alone, said Van der Maarel.
The establishment of this platform follows ABP's recent decision to increase its infrastructure allocation from 4% to 7% of total assets under management, with a focus on impacting the global energy transition.
“Our typical investment size in private market deals, particularly in real estate and infrastructure, is around €300 to €700 million per deal. However, with many large parties now pursuing these deals, we sometimes miss out because the bidding process becomes more competitive and the terms less favourable,” he said.
"By being able to scale up, it allows us and our clients to have access to more suitable opportunities, notably in infrastructure where transactions are often very sizeable."
The platform’s success is evident, with APG establishing high-profile partnerships with Japan’s Government Pension Investment Fund (GPIF), Korea’s National Pension Service (NPS), New Zealand Super. Most recently the fund partnered with several large Swiss pension funds - PUBLICA, City of Zurich, Kanton Aargau, and Credit Suisse.
The firm has also established joint ventures with Australia’s Aware Super in the European digital infrastructure sector and, as mentioned, with the Indonesia Investment Authority (INA) and Abu Dhabi Investment Authority (ADIA) on physical road infrastructure.
A FAMILY OFFICE PERSPECTIVE
Thailand's GP Group takes a markedly different approach to co-investment.
The family office, which manages investments across 23 geographies with interests in four publicly listed companies and 59 private entities, emphasises strategic alignment over scale, according to Shiraz Poonevala, investment director at GP Group.
GP Group
“All we do, and all we know, to be honest, is co-investments—that for us is basically our livelihood. We aren't just financial investors; we're strategic investors with domain knowledge," he told AsianInvestor’s audience.
"Our best investments have been with other family offices, not so much with private equity, because they have different interests and time constraints. When you invest other people's money, it's a slightly different philosophy than investing family money."
GP Group employs a three-pronged evaluation framework for potential investments, prioritising business understanding, geographical familiarity, and partner trust.
"For us, it's quite important that we also understand the culture. We're looking at long-term money, which often aligns better with family office partners than other investment firms focused on specific multiples and exit timelines."
EVOLVING MODELS
The contrasting approaches highlight a growing sophistication in Asia's co-investment market.
While institutional investors like APG leverage scale to access larger opportunities and strengthen impact metrics, GP Group focuses on strategic alignment and cultural fit with other family investors.
"Working with like-minded institutions allows us to combine assets from multiple partners and target larger-scale opportunities," Van der Maarel said of APG's platform model.
This approach may soon signal a broader shift in how institutional investors approach private market investments. The ability to pool resources and expertise while maintaining control over deal execution could provide a template for other asset owners seeking to enhance their direct investment capabilities.
For family offices like GP Group, the focus remains on leveraging their entrepreneurial heritage and operational expertise to build lasting partnerships.
"Once we agree to partner, we try to see what the framework and alignment is," explained Poonevala. "If you're a patient investor, co-investing with those you trust is the way to go."
This approach, while different from the larger-scale institutional model, has proven effective in navigating Asia's complex business landscape, he said.