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UBS Asset Management launches the fifth generation of its successful private equity growth strategy, PEG V. As with previous PEG strategies, investors will be able to select a globally diversified portfolio.
 

First, PEG V will allow investors to pick their regional allocation. In previous funds, investors only could enter via the global entry point (i.e. Luxembourg or the Swiss AST structure). The newly launched PEG V will allow investors to pick their regional preferences via a European, a North American and an Asia Pacific sleeve. Obviously investors still will be able to enter via the global entry point. The second big change is that the PEG V fund family will continue its journey in increasing the transactional content, specifically private equity secondaries and co-investments.

There are a number of advantages of the higher transactional content for investors. One advantage is that due to the fact that secondaries and co-investments typically are cheaper on fees, the overall total expense ratio for the latest PEG V will be comparable to that of a single private equity fund. Another advantage of transactions are that capital is more quickly deployed and that the j-curve effect is minimized.

PEG V is really a fund family, rather than a single fund. The global portfolio, the North American and APAC sleeves are all Article 6 according to SFDR. But what makes PEG V really stand out is the European sleeve. The European portfolio is an Article 8 fund under the SFDR regulations, and it has a number of ESG characteristics. At least 70% of the private equity funds, which PEG V Europe invests in, must be Article 8 or equivalent.

In addition, the European portfolio strives to achieve 4 ESG goals. The first goal is that at least 51% of the companies the fund has exposure to must decrease their CO₂ footprint over the holding period. Secondly, at least 51% of the companies must have increased the rate of female participation in management positions. The third goal is that at least half of the companies must report regularly on sustainability. And the fourth goal is that at least 51% of all healthcare-related companies which PEG V Europe has exposure to must be healthcare companies that provide products or services which improve people's standard of living and level of healthcare.