This post aims to show the progress made to build up private markets portfolios via the Brunel pool.
Funds can commit to Brunel's private markets portfolios once every two years. Wiltshire made initial commitments to the following private markets portfolios on 31 March 2020, with further commitments made on 31 March 2022, as follows:
| Portfolio | Commitment | Date |
|---|---|---|
| Private equity | £140m | 31 March 2020 |
| Private equity | £140m | 31 March 2022 |
| Private debt | £180m | 31 March 2020 |
| Private debt | £160m | 31 March 2022 |
| Infrastructure | £80m | 31 March 2020 |
| Secured income | £250m | 31 March 2020 |
After commitments are made, Brunel then work with their strategic partners to identify funds or direct investment opportunities. These underlying funds then themselves have to source companies or assets in which to invest. It is only at this point that money is actually "called" or "drawn down" against our commitment and invested.
The following chart shows the progress made by Brunel to date in investing these commitments. Progress is still in the early stages for all portfolios except the secured income portfolio, which has made excellent progress. Wiltshire officers regularly engage with Brunel on these portfolios, to ensure that a pipeline of potential funds is being explored, and that the funds which Brunel have selected are working to find the best investment opportunities and put the money committed to work.
| Portfolio (£m) | Commitment 31 Mar 20 | 31 Dec 20 | 31 Mar 21 | 30 Jun 21 | 30 Sep 21 | 31 Dec 21 | 31 Mar 22 |
|---|---|---|---|---|---|---|---|
Brunel Private Infrastructure | 80 | 5.5 | 5.1 | 5.1 | 6.7 | 7.3 | 21.0 |
Brunel private equity | 140 | 0.0 | 1.5 | 5.0 | 11.6 | 21.7 | 28.5 |
Brunel private debt | 180 | 0.0 | 0.0 | 0.0 | 14.3 | 31.2 | 31.4 |
Brunel Secured Income | 250 | 16.9 | 91.8 | 110.9 | 114.4 | 182.5 | 210.3 |
The following chart shows the market value of the private markets portfolios compared to the amount that Wiltshire committed. Note that this only shows commitments made on 31 March 2020. Further commitments have also been made on 31 March 2022, as set out in the table above, to continue to build these portfolios while obtaining an appropriate level of diversification.
Our next post will share some figures to show the costs and fee savings associated with pooling to date.
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