Massachusetts PRIM commits $300m to private equity

The pension allocated funds to Oaktree Capital Management and TA Associates despite being over-weighted to private equity.

Massachusetts Pension Reserves Investment Management Board has approved $300 million in fresh commitments to private equity firms TA Associates and Oaktree Capital Management.

The board last week approved a $150 million to Oaktree Capital’s fifth “loan to own” fund, Oaktree Principal Fund V, which is targeting $5 billion. The board also approved a $150 million commitment to TA Associates XI, which reportedly has a hard cap of $4 billion.

The $50.6 billion pension has a long-term allocation to alternatives of 10 percent and reportedly has an actual allocation of 12.2 percent.

The San Francisco Employees’ Retirement System approved a $25 million allocation to TA Associates eleventh fund in March.

The Ohio School Employees’ Retirement System recently made a $40 million commitment to Oaktree’s fund, which will target the debt of distressed companies. The firm managed a recent distressed acquisition with Pierre Foods, in which it bought the company’s debt at a discount, for less than $200 million, and took control of the company as part of the bankrupt company’s plan of reorganisation.