According to MassPRIM’s half-yearly private equity update, discussed at the firm’s investment committee meeting on 21 July, the Boston-based pension fund announced that it has to commit $713 million to private equity and $325 million to alternative fixed income by the end of 2015. Allocations to these asset classes stood at $1.7 billion and $700 million respectively at the start of the year, highlighting that the firm has been busy during H1.
In June alone, the pension fund committed $212 million to two private equity vehicles. Charterhouse Capital Partners X, which received a $121 million commitment from MassPRIM, held a first close in May 2015 at $1 billion. Launched in November 2014, the fund is seeking $3 billion to invest into the Western European market, less than its predecessor which closed on $4 billion in March 2009. The remainder of the capital was earmarked for North America focused Quantum Energy Partners VI which held a final close at $4.45 billion earlier this month, greatly surpassing its initial $2.5 billion target.
The most recent commitment to a fixed income vehicle was in April 2015 when the firm allocated $150 million to CarVal Investor’s CVI Credit Value Fund III. The fund, which has a global remit, surpassed its $2 billion target when a final close was held in June at $3 billion. Investments will focus on distressed opportunities globally.
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