IPERS commits over $270 million to private equity

The pension made commitments to eight funds in 2014

The Iowa Public Employees’ Retirement System (IPERS) invested in eight private equity funds this year with commitments totaling over $270 million, according to documents obtained by PEI through a Freedom of Information Act request.

Of the investments disclosed, the pension committed $78 million to CVC’s Capital Partners VI a €10.5 billion vehicle focused on investments in Europe and North America, which closed in 2013. Another $75 million went to GTCR Fund XI, a $3.85 billion buyout fund which is the eleventh for GTCR. That fund closed in January of this year.

$27.5 million went to KPS Fund IV, a $3.5 billion special situations fund which closed in 2013 – after just three months in market.

$47 million went to Odyssey Investment Partners Fund V, a $2 billion private equity fund formed to pursue control-oriented investments and management buyouts of established middle-market companies with operations predominantly in the United States.

$75 million went to Onex Partners IV, a $4.5 billion fund focused on North American investments.

$60 million went to Technology Crossover Ventures, TCV Fund VIII a $2.23 billion fund focused on growth equity investments in technology companies.

IPERS overall portfolio returned 15.88 percent for fiscal year 2014, an increase from the previous fiscal year’s investment return of 10.12 percent. IPERS’ Trust Fund balance grew from $24.83 billion on June 30, 2013 to $27.98 billion on June 30, 2014.

“While we are pleased with this year’s investment performance, IPERS’ focus will continue to be long-term—30 to 50 years out—in analyzing the Fund’s performance,” IPERS’ CEO Donna M. Mueller said in a statement. “IPERS easily beat its actuarial assumed return of 7.5 percent, but what’s more important is the fact that our 30-year annualized return is 10.15 percent. Our next big indicator is the annual actuarial valuation where we will learn other key measurements.”

IPERS is the largest pension system in Iowa.