IRCANTEC

Investment Strategy

IRCANTEC (Institution de Retraite Complementaire des Agents Non Titulaires de l’Etat et des Collectivites publiques) manages approximately $15 billion as France’s supplementary pension scheme for non-permanent public sector employees. The fund covers contract workers, temporary employees, and other non-tenured staff across French government agencies, local authorities, and public institutions.

IRCANTEC operates as a pay-as-you-go scheme with reserves invested to support long-term sustainability. The fund’s investment strategy is designed to generate returns on its reserves while maintaining a risk profile appropriate for a public pension institution. Asset management is administered by Caisse des Depots et Consignations (CDC), which provides investment infrastructure, expertise, and operational support.

The portfolio spans public equities, fixed income, real estate, infrastructure, and private equity. IRCANTEC’s asset allocation reflects a conservative overall approach with a growing allocation to alternatives as the fund seeks enhanced returns and diversification beyond traditional asset classes.

IRCANTEC has been a notable leader in responsible investment among French pension institutions. The fund has adopted a comprehensive responsible investment charter, implemented exclusion policies, and integrated ESG criteria into its investment decision-making. IRCANTEC regularly publishes detailed reports on the responsible investment characteristics of its portfolio.

Private Markets Approach

IRCANTEC’s private markets program is growing and covers private equity, infrastructure, and real estate, managed through the CDC investment platform.

Private equity exposure has been built through fund commitments focused on European buyout and growth strategies. IRCANTEC invests through both direct fund commitments and through CDC’s broader private equity program. The fund favors managers with strong track records and clear ESG integration in their investment processes.

Infrastructure is an area of increasing interest for IRCANTEC. The fund recognizes the alignment between infrastructure assets and its long-duration pension reserves, particularly investments providing inflation-protected income streams. Investments have focused on energy transition, renewable energy, and social infrastructure, reflecting both return objectives and the fund’s responsible investment commitments.

Real estate provides income and diversification. IRCANTEC accesses property through fund commitments and the CDC real estate platform, with exposure to French and European commercial and residential property.

IRCANTEC’s responsible investment requirements apply to all alternative investments. Managers must demonstrate ESG integration, adhere to exclusion criteria, and provide regular reporting on sustainability metrics. The fund’s RI charter is publicly available and should be reviewed by prospective managers.

How to Approach

GPs should engage through Caisse des Depots et Consignations, which administers IRCANTEC’s investment program. CDC’s investment teams handle manager selection and due diligence on behalf of the fund, though IRCANTEC’s board sets strategic investment policy.

Strategies with strong responsible investment credentials, particularly those aligned with the energy transition and social impact, will find natural alignment with IRCANTEC’s stated priorities. The fund’s RI charter sets clear expectations, and managers should demonstrate compliance before approaching.

IRCANTEC’s investment activity is visible at French institutional investor events, France Invest gatherings, and responsible investment conferences. The CDC platform provides access to IRCANTEC through established channels.