Maryland commits $400m to private equity

The $40bn retirement system is edging closer to its 10% long-term target allocation to the asset class.

The Maryland State Retirement and Pension System committed about $400 million to private equity during the first half of 2013, according to documents from the pension.

The commitments included $100 million to The Riverside Company’s Riverside Capital Appreciation Fund VI and €50 million to UK-based Triton Partners’ Fund IV. Riverside has raised about $1.48 billion for its sixth capital appreciation fund, according to Private Equity International’s Research and Analytics division. Triton’s fund closed on €3.3 billion in May, well above its original €2.4 billion target.

Maryland also pledged $50 million each to CDH Investments’ Fund V and MBK Partners’ Fund III. Hong Kong-based CDH held a first close on $1 billion in February. The fund has a $2 billion target. South Korean-based MBK had raised $2.3 billion toward its $2.6 billion hard-cap as of July.

An additional £45 million (€53.6; $71.6 million) commitment was made to healthcare and technology-focused HgCapital’s Fund 7. The UK-based firm held a final close in April on £2 billion (€2.38 billion, $31.8 billion).

Maryland also committed $30 million to Blue Wolf Capital Partners’ Fund III, which reached its $300 million hard-cap in July after launching last October, and $25 million to ICV Partners’ third vehicle, which focuses on consumer goods, healthcare and technology. The 2012 vintage fund has a $600 million target and had collected about $122 million as of last December, according to documents filed with the US Securities and Exchange Commission. 

Maryland’s actual allocation to private equity was 6 percent during the first quarter of 2013 and 6.2 percent during the second quarter. The $40 billion system’s long-term target allocation to the asset class is 10 percent, according to its website.