East Sussex pension fund, the £1.1bn (€1.7bn) regional UK fund, is following the trend of other UK pension funds by taking its first steps into private equity investment, putting out a tender for a private equity mandate.

UK pension funds almost doubled their exposure to private equity in 2001 to £1.6bn, according to figures from the British Venture Capital Association. Paul Myners' 2001 review of institutional investment encouraged pension funds to consider the importance of private equity in a diversified portfolio.