Kansas re-ups $60m to Apollo

The $13bn retirement system has committed $160m to private equity in 2013 and is growing its allocation from 2.5% to 8%.

The Kansas Public Employees Retirement System’s board of trustees approved a $60 million commitment to Apollo Investment Fund VIII at its meeting last week, a retirement system spokesperson told Private Equity International.

Kansas has an existing relationship with Apollo, having committed $25 million to the firm’s $14.7 billion fund VII. Apollo’s Fund VII was generating a multiple of 1.6x and a net IRR of 21.8 percent as of 30 September 2012, according to performance data from the California Public Employees’ Retirement System.

Apollo is targeting $12 billion for Fund VIII, which has attracted commitments from the Oregon Public Employees’ Retirement System and the Teachers’ Retirement System of Louisiana, according to Private Equity International’s Research & Analytics division. 

Including the investment with Apollo, Kansas has approved three private equity commitments this year, committing $50 million to Warburg Pincus Private Equity Fund XI, which closed earlier this month on $11.2 billion, and $50 million to EnCap Investments’ Fund IX, which hit its $5 billion hard-cap in February.

Last November, Kansas adopted a new asset allocation mix that increased its long term private equity investment target from 5 percent to 8 percent. The system has a short term target of 3 percent. 

As of 31 March, Kansas’ private equity portfolio was valued at $360 million, equal to 2.5 percent of the entire portfolio.