Cassa Geometri to allocate €150m to private equity in strategic shift

Cassa Geometri, Italy’s pension fund for surveyors, plans to invest €150m in private equity to reach its strategic asset allocation goals.

The fund will allocate capital across Italy, Europe, and globally. It will focus on buyout and growth capital strategies while limiting venture capital exposure to 20%. The fund selection process will conclude by June 2025, with mandates awarded to asset managers managing at least €2.5bn in assets.

The pension fund is also rebalancing its portfolio. It will cut direct real estate investments from 12.4% of total assets in 2024 to 9.1% in 2025. Additionally, it plans to reduce its exposure to real estate funds. At the same time, Cassa Geometri will increase allocations to government and corporate bonds from 12.6% to 16%. Total assets are projected to grow to €1.94bn in 2025, up from €1.67bn in 2024.

To manage risks and maximise returns, the fund is adopting an Asset and Liability Management (ALM) framework with a Liability-Driven Investment (LDI) strategy. This approach divides its portfolio into hedging assets, which handle solvency risks, and performance assets, which focus on long-term returns. Italy’s doctors’ pension fund, Enpam, uses a similar strategy.

By adding private equity to its portfolio, Cassa Geometri aims to diversify and enhance returns. The shift highlights private equity’s growing importance for institutional investors seeking to balance risk and performance.

Source: IPE

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