The Public Employee Retirement System of Idaho has made about $175 million in re-up commitments to private equity and debt funds, according to presentation documents from the pension’s Tuesday board meeting.
The $13.9 billion pension system committed $40 million to Hamilton Lane Co-Investment Fund III last December. The pension previously committed the same amount to Hamilton Lane’s Co-Investment Fund II and Fund I in 2008 and 2005, respectively. Fund II has generated a 17.7 percent net internal return rate since inception while Fund I has generated a negative 0.2 percent IRR, as of 30 June 2013. Hamilton Lane is the pension’s only active co-investment, according to a spokesperson.
Idaho also committed $40 million to Apollo Global Management’s Fund VIII in June and $35 million to CVC European Equity Partners VI in July. Apollo closed its eighth buyout fund on $17.5 billion earlier this month, making it the largest fund raised since the financial crisis. CVC Fund VI closed on €10.5 billion (£8.6 billion; $14.3 billion), surpassing its €9 billion target, in July, according to Private Equity International’s Research and Analytics division.
Idaho’s most recent debt investment was a $30 million commitment to American Securities’ Opportunities Fund III, a distressed debt vehicle that has raised at least $725 million toward a $750 million target, according to Private Debt Investor. Idaho also committed $30 million to Kohlberg Kravis Roberts’ North America Fund XI, which had raised $8.3 billion of its $10 billion target as of last October, according to PEI data.
For 2014, Idaho is considering commitments to The Blackstone Group’s energy division, Bridgepoint, Enhanced Equity, Lindsay Goldberg, TPG Partners and Veritas Capital. The pension has previously invested with all six managers.
Idaho’s private equity portfolio is focused primarily on the North American buyout market, with 74 percent of its private equity exposure to this segment. The pension has a 7.4 percent actual allocation to the asset class as of 30 June.