Mass PRIM commits $100m to Gores Group

The US public pension, not having seen enough ‘sufficient quality opportunities’, has committed only one-third of its budgeted $1.5bn for private equity investments this year.

The Massachusetts Pension Reserves Investment Management Board has committed $100 million to the Gores Capital Partners III, a buyout fund that is targeting $1.5 billion.

The $40 billion pension had made commitments of just over $500 million to private equity funds this year, far short of the $1.5 billion allocated for the asset class in 2009.

It is comfortable coming in below its private equity allocation goal for the year, according to a spokesperson.

“The amount of money PRIM invests in a given year in private equity is determined by the volume of attractive investment opportunities,” the spokesperson said. “While we develop a goal at the start of every year, we’re very comfortable falling short if staff does not see sufficient quality opportunities.”

The allocation goals for 2010 will be presented at the pension’s meeting in February.

The pension in August made $500 million in fresh commitments to firms representing various strategies, including Oaktree, Charlesbank, KPS, Centerbridge, Westview Capital Partners and Xenon Private Equity.

Gores Group raised $1.3 billion in 2007 for its second buyout fund. The firm was founded in 1987 by Alec Gores. Since inception, the firm has acquired 60 companies with combined revenues of more than $15 billion. The firm has $1.7 billion under management.