ACCESS awards more private markets mandates with £350 million in direct lending

ACCESS has awarded £350 million in direct lending mandates as it continues to expand its private markets offering.

The pool has appointed Arcmont Asset Management to run a £200 million European mandate and Golub Capital to invest £150 million in a US direct lending strategy.

In a statement, ACCESS said both mandates would see the managers allocate to senior secured direct loans to corporates, with a focus on middle-market companies backed by private equity sponsors.

It comes as ACCESS seeks to establish an internal team and a regulated investment management company to ensure compliance with the government’s intention for LGPS pooling.

Mark Kemp-Gee, chairman of the ACCESS Joint Committee, which oversees the pool, said: “This allocation to senior direct lending marks the fourth phase of our private markets journey.

“We were highly impressed with the experience of both Arcmont and Golub Capital, and believe they are well placed to maximise the benefits of this asset class for our partner funds and members.”

The appointments follow other recent mandates, including to Adams Street Partners and HarbourVest to invest in private equity, in a deal that could be worth up to £12 billion in assets over the life of the agreement.

Over the past 18 months ACCESS has announced a range of private markets mandates, including several targeting real estate. These include a £1.3 billion property fund run by CBRE Investment Management, a long-lease mandate awarded to Aviva Investors, and a £100 million impact real estate fund run by Orchard Street Investment Management.

The pool has also backed an affordable housing fund run by Legal & General Investment Management.