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Maryland pension ups PE allocation to 5%

The $37.5 billion Maryland State Retirement Agency is increasing its target allocation for private equity to 5 percent from 2 percent indicating an extra $1.1 billion could now be available for commitment.

Maryland’s State Retirement Agency has increased its target allocation for private equity to 5 percent from 2 percent.

Acting chief strategist of the $37.5 billion (€24.3 billion) fund, John Greenberg, told PEO the increase followed a wider asset allocation study conducted on Maryland’s behalf. The amount of new capital available to private equity is approximately $1.1 billion.

The Maryland pension will also double its real estate allocation to 10 percent from five percent, with up to $2.2 billion extra capital available for investments. There is currently no allocation to infrastructure but the fund would continue to “consider the class along with a host of other investments”, Greenberg said.

The strategist said the increases would take place as soon as possible, but stressed investments would be made on a “prudent” basis. He said: “We hope to achieve these increases the sooner the better but they will be done when it’s prudent.”

“When we make asset allocations our decisions are based on the long-term outlook,” he added. As at the end of December 2007, Maryland had a total private equity portfolio valued at $511.7 million, 1.3 percent of assets under management.