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Advocating responsible finance

Mandates: benefiting from another year of rapid growth

Institutions show strong appetite for Ardian Mandates’ flexibility and the benefits of Ardian’s global scale and privileged market access.

Our Mandates activity continued to grow strongly in 2019, with 10 new mandate commitments worth about $3 billion confirmed, including our selection by KENFO, Germany’s first sovereign wealth fund, to manage a large private markets allocation. This was one of the most keenly contested Mandates of the year, putting Ardian against many leading European and US players.

The strength of Ardian’s own range of funds, coupled with the excellent access our Fund of Funds platform gives us to primary fundraisings by top third-party managers, is proving very attractive. Last year, our main markets for mandate growth were in Europe (Germany, France, Switzerland, Italy), where our long-established local presence is providing a key advantage.

Mandates will remain a critical area of growth for Ardian as more clients take the opportunity to build individually tailored portfolios, spanning different asset classes, regions and market segments, with the legal structuring and level of active involvement that suits their needs. Our goal for 2020 and beyond is to consolidate our strong position in Europe for Mandates and increase our presence in the Americas, Asia and the Middle East.

“Our Mandates activity will only become more important in the future. A growing group of clients now wants tailored portfolios rather than standardized products.”


JAN PHILIPP SCHMITZ
Head of Mandates, Ardian Germany and Asia, and Member of the Executive Committee
$ 3 Bn
new mandate volume raised in 2019
$ 4 Bn
deployed in 2019
10
new mandate commitments confirmed in 2019
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Case study

A look on Germany’s first sovereign wealth fund partners with Ardian, with Daniel Rathmann, Investment Manager at KENFO
KENFO was established by the German government in 2017 to manage the country’s first sovereign wealth fund, which will finance the long-term storage of nuclear waste from the country’s decommissioned power plants. KENFO was set up with €24 billion contributed by the nuclear industry and will allocate about 30% of its capital to illiquid assets, including private equity. Daniel Rathmann, Investment Manager at KENFO, explains why it is working with Ardian.
“We want a global buyout portfolio with small, mid and large cap holdings and a small exposure to growth and turnaround. A mandate structure was right for us because it doesn’t make sense to build a large global in-house team for our private equity allocation. We want to be hands-on and participate in the ultimate decisions regarding portfolio construction and the target funds to be subscribed. However, it is currently not practical or us, nor do we have the resources at the moment, to build close relationships with multiple GPs within a short period of time and monitor them over the longer term. Therefore, we need to partner with someone who already has those relationships and resources. Ardian, with its large team and established industry network, will source attractive investment opportunities across markets for our mandate, perform state of the art due diligence, and monitor our growing portfolio. We looked at the entire market and conducted a competitive manager search process in which we assessed areas such as track record, team stability, access to quality target funds as well as managers’ local presence in different parts of the world – we don’t like managers who just fly in and out. It was a thorough process and we felt that Ardian met our expectations. In addition, we have been assigned dedicated local contacts, including senior investment professionals in Germany for any regular and ad-hoc information requirements.”
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2019 Activity Report