Investment Strategy
ERAFP (Etablissement de Retraite Additionnelle de la Fonction Publique) manages approximately $40 billion as France’s mandatory supplementary pension scheme for civil servants. Established in 2005, ERAFP is a relatively young institution that is still in its accumulation phase, meaning contributions currently exceed benefit payments. This demographic advantage gives the fund a long investment horizon and growing assets.
ERAFP’s most distinctive characteristic is its 100% socially responsible investment mandate. The fund’s board adopted an SRI charter in 2006 that applies to all investments without exception. Every asset class, every manager, and every investment must meet ERAFP’s responsible investment criteria, which span environmental, social, and governance dimensions. This comprehensive approach makes ERAFP one of the most systematically responsible institutional investors in Europe.
The portfolio spans public equities, fixed income (including French and European government bonds), real estate, infrastructure, private equity, and private credit. Asset allocation is governed by French public pension regulations, which set constraints on the fund’s investment universe. Within these regulatory boundaries, ERAFP has been progressively diversifying into alternatives to enhance long-term returns.
The fund’s accumulation phase profile means that ERAFP can afford to take a long-term perspective and is well-positioned to capture illiquidity premiums from private market investments.
Private Markets Approach
ERAFP’s alternatives program has been growing steadily as the fund diversifies beyond traditional fixed income and equities. The program spans private equity, infrastructure, real estate, and private credit, all subject to ERAFP’s 100% SRI mandate.
Private equity investments are made through fund commitments to buyout, growth equity, and social impact strategies in Europe and globally. ERAFP selects managers through competitive processes that evaluate both investment track record and ESG integration. The fund has shown particular interest in strategies that combine financial returns with measurable social or environmental impact.
Infrastructure is a strategic priority. ERAFP has invested in energy transition, renewable energy, transportation, and social infrastructure through both fund commitments and co-investments. The fund’s long investment horizon and responsible investment mandate make infrastructure a natural fit, particularly assets supporting decarbonization and sustainable development.
Real estate is a growing allocation. ERAFP invests in French and European property through fund commitments and direct investments, with emphasis on sustainable buildings and energy-efficient developments. The fund applies its SRI criteria to real estate through requirements on building certifications, energy performance, and social criteria.
Private credit exposure includes direct lending and infrastructure debt, providing enhanced income within the fund’s regulated investment framework.
How to Approach
GPs must understand and engage with ERAFP’s 100% SRI mandate. This is not optional or aspirational — it is a binding requirement for all investments. Managers should review ERAFP’s published SRI charter and demonstrate how their strategy, portfolio, and operations comply with its criteria.
ERAFP’s investment team in Paris manages the alternatives program and conducts manager selection through competitive processes. The fund publishes its investment strategy and responsible investment reports, providing transparency about its priorities and allocation plans.
GPs with strong ESG integration, impact measurement capabilities, and alignment with France’s energy transition objectives will find natural resonance. The fund attends French institutional investor events, France Invest conferences, PRI events, and European responsible investment forums.
Frequently Asked Questions
How much does ERAFP allocate to alternatives?
ERAFP targets approximately 15% of its portfolio in alternative investments including private equity, infrastructure, real estate, and private credit. What distinguishes ERAFP from most pension funds is its 100% SRI (socially responsible investment) mandate, meaning all investments — including alternatives — must meet the fund's responsible investment criteria. This requirement shapes both manager selection and portfolio construction across the alternatives program.
How can fund managers approach ERAFP?
Fund managers should approach ERAFP's investment team in Paris. The fund manages its alternatives program through a combination of direct internal oversight and external managers selected through competitive processes. ERAFP's 100% SRI mandate means that GPs must demonstrate genuine ESG integration and compliance with the fund's responsible investment criteria. The fund publishes its SRI charter, which should be reviewed before approaching.
What is ERAFP's typical commitment size?
ERAFP's commitments to individual private market funds typically range from $30 million to $150 million depending on the strategy and fund size. The fund's growing AUM and increasing alternatives allocation provide capacity for meaningful commitments. ERAFP values co-investment opportunities that allow it to deploy additional capital alongside fund commitments.
