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MainePERS to reach PE target in 5 years

The pension fund has a pacing plan to build up to its 10% target.

The Maine Public Employees Retirement System plans to reach its private equity allocation target of 10 percent in the next five years, chief investment officer Andrew Sawyer told Private Equity International.

“We have a flexible pacing plan that allows us to build up to our targets deliberately,” he said.

MainePERS is currently less than half way toward the target set in December 2012, allocating 4.9 percent of its $12.61 billion of assets under management, equivalent to about $618 million, as of 31 July.

Sawyer said MainePERS' private equity strategy is to invest in a limited number of GPs with potential for superior performance in contrast with a public market comparable.

“We want to invest in funds that we believe will beat the public stock market,” he said.

At its 13 August board meeting, MainePERS approved a maximum $50 million commitment to Carlyle Power Partners II and up to $50 million to Walton Street Real Estate Fund VIII, both subject to due diligence, legal review and negotiations.

So far this year, MainePERS has committed capital to seven funds, including $53.86 million to Rhone Partners V and $15 million to Thoma Bravo Special Opportunities Fund II, according to its private market investments summary at 31 March.