Following a change in legislation, the four Swedish national pension buffer funds, AP1-AP4, were granted the opportunity to invest in private debt starting in 2021 to capitalize on the illiquidity premium in this asset class and generate returns amid a low-interest-rate environment for traditional fixed income. In late 2020, AP2’s board decided to make a strategic allocation of two percent of its then SEK 386 billion portfolio to private debt. Patrik Jonsson, who had been with AP2 since 2015 as Head of Manager Selection for Public Assets, was entrusted with...