KPERS shares PE pacing plan

The Topeka-based public pension system outlined its private equity pacing plan for FY 2023.

Name: Kansas Public Employees Retirement System
Headquarters: Topeka, US
AUM: $24 billion
Allocation to alternatives: 25.05%

Kansas Public Employees Retirement System has published its private equity pacing plan for 2023 according to materials from the public pension’s November investment committee meeting.

Highlights from the Kansas Public Employees Retirement System’s November 2022 investment committee meeting:

  • KPERS outlined its private equity pacing strategy for FY 2023, with an annual commitment range of $150 million to $250 million. Additionally, the pension hopes to make four to six new fund commitments to the asset class.
  • The public pension also hopes to reduce its exposure to private equity. With its latest private equity allocation of 11.51 percent, KPERS aims meet its 9 percent target allocation near-term.
  • KPERS aims to lower its commitment range towards individual funds with a target of $25 million to $50 million per fund.
  • The pension system has set a target range of 25 to 30 active fund managers for FY 2023, including funds that will not receive re-up commitments.

Kansas Public Employees Retirement System committed $170 million to private equity funds in 2022. With a majority of their private equity commitments focused on North American buyout funds, the public pension’s investments ranged between $16 million and $40 million per commitment.

In 2022, KPERS committed $25 million each to Apax XI and Platinum Equity Capital Partners VI. Additionally, they committed $40 million each to Green Equity Investors IX and Warburg Pincus Global Growth 14. Lastly, the pension system committed $16 million to NEA 18 Venture Growth Equity and $24 million to New Enterprise Associates 18.

KPERS’ private equity portfolio is managed by Mercer, a New York-based asset management and advisory firm. Mercer and KPERS outline their investment process as a five-tiered collaborative process, according to recent meeting materials. From July 2020 to June 2022, Mercer sourced data from 5,819 actively-fundraising private equity vehicles. Out of these, KPERS committed to 11 private equity funds as recommended by Mercer.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments.