Bayerische Versorgungskammer (BVK), Germany’s largest pension fund, has awarded its ninth private equity mandate to investment firm Pantheon.

The firm said in a statement that the two firms, which have been linked for nearly two decades, have investments in nine commingled funds and accounts covering European, global, and US private equity. This latest mandate is the third of its kind focused on providing capital to support the ongoing growth of small and mid-sized private companies in the US, through primary commitments and complementary co-investments.

BVK head of equity and alternative investments, Hendrik Kottsaid, said: “We are very pleased with the excellent working relationship we have built with the Pantheon team over the last 17 years. Pantheon has become one of our key partners in private equity, providing us with continuous access to attractive investment opportunities in the less visible parts of the market, where alignment of interest is the strongest between investors and the smaller and medium-sized businesses they help to grow.”

BVK manages the pension assets on behalf of 12 occupational and municipal pension schemes within the German state of Bavaria, with a combined €111.9bn in assets under management. It claims that around 20 per cent of households within the state receive benefits from BVK. Pantheon, meanwhile, has more than USD 65bn in discretionary assets under management across its asset classes and programs, and says it commits more than $4bn annually across its private equity strategies.

Pantheon partner and head of continental Europe investor relations, Ralph Guenther, said: “We are grateful for the continued trust placed in us by BVK to continue to help it provide financial security to millions of pensioners across Bavaria. Building on our 17-year working relationship across nine programs, BVK’s latest mandate reflects our long-term partnership approach and the strength of our specialized expertise in the private equity mid-market.”

This news comes around two weeks after it was announced that a US-based legal dispute had led to a USD 0.5bn lawsuit involving a number of investors in New York property. Those investors, it is understood, include BVK, which has disavowed any involvement.

Reports indicate that the owner of Core Club, a resident of a New York property, alleges that BVK is a beneficial owner of the location. BVK, meanwhile, has said that it does not own or manage the properties but owns shares in a fund that has itself invested in them. Those reports also indicate that BVK has bought a number of high-value US properties through an alternative fund investment manager.

The crux of Core’s lawsuit appears to be an allegation that Michael Shvo, who led the investments in the properties, overpromised and underdelivered on the development of the club locations. The litigants are asking for a reduction in the Manhattan rent, the rescindment of a lease, and $600m in damages.

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