BT Pension Scheme invests in Federated Hermes innovation fund

26 September 2023

Federated Hermes, Inc. has announced the successful opening of its Federated Hermes GPE Innovation Fund II (“HINF II”). Commitments have been secured from British Business Investments and BT Pension Scheme (BTPS).

HINF II is focused on driving innovation and technological advancement across Europe and will conform with Article 8 of the EU Sustainable Finance Disclosure Regulation. The Fund’s focus will be on companies and funds with strong growth potential in the information, communication, and technology sector, particularly within non-cyclical sub-themes such as digital enterprise architecture and next generation healthcare.

HINF II introduces two separate funds: one for fund investments and one for direct investments and co-investments, allowing greater flexibility for investors.

The Fund’s launch demonstrates Federated Hermes GPE’s confidence in the potential for further opportunities in the European growth equity market. The strategy builds upon Federated Hermes GPE’s investment in European growth equity since 2014 and is the successor to the 2020 vintage, HINF I.

The Fund is available for distribution across global jurisdictions, including but not limited to the UK, Switzerland and other core European Union markets.

Peter Gale, CIO and Head of Private Equity at Federated Hermes GPE, commented; “Following the success of HINF I, HINF II underlines our priority to maintain a strong focus on investing in European growth opportunities. We prioritise investments in companies and themes that are at the forefront of accelerating technological innovation. By focusing on software-enabled themes and capturing opportunities arising from demographic and societal changes, we stay ahead of industry trends with the aim of driving growth within the portfolio.”

Judith Hartley, CEO, British Business Investments, commented: ‘’At British Business Investments, our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. Following our earlier support for Federated Hermes in 2019, we are pleased to be making a further commitment to HINF II through our Managed Funds Programme to support innovative smaller businesses in the information, communication and technology sectors.’’

Wyn Francis, Chief Investment Officer, Brightwell, adviser to BTPS said; “BTPS remains committed to supporting technological innovation across the UK and Europe. This growth focused program, complements their thematic Horizon private equity strategy which the Scheme co-founded with Federated Hermes GPE.”

Gordon Ceresino, Vice-Chair of Federated Hermes, Inc. commented; “HINF II’s specialist focus on European Growth Equity, follows the globally diversified thematic products of Horizon III and PEC V, that together have so far successfully raised $1.5bn.”

Source: Federated Hermes