The Connecticut Retirement Plans and Trust Fund has approved up to $125 million in private equity fund commitments, according to documents from the pension’s November meeting.
Connecticut committed $50 million to Altaris Health Partners’ Fund III, which launched in May with a $425 million target. The fund will invest in pharmaceutical, medical device and healthcare IT companies in the US and Western Europe. Connecticut previously invested $40 million in each of Altaris’ previous funds. The second fund, which closed on $400 million in 2007, had generated a 21.9 percent net IRR for Connecticut as of 31 March.
The pension also committed $75 million to Yucaipa American Alliance Fund III, which is targeting $1.6 billion. The 2012 vintage fund will make control investments in US mid-market logistics, distribution, grocery/food, and retail and hospitality companies. The fund will also make public equity, non-control and debt-related endeavors investments. Connecticut committed $75 million to Yucaipa’s prior fund in 2008. The fund had generated a 19.9 percent net internal rate of return and a 1.5x return multiple for Connecticut, as of 31 December, 2012.
Since 1973, Connecticut’s funds have been managed by the state’s Investment Advisory Council and state treasurer Denise Nappier. The pension, which includes the State Employees’ Retirement, the Teachers’ Retirement Fund and the Municipal Employees’ Retirement Fund, has more than $25.9 billion in assets under management as of 30 June, according to its website.