MassPRIM commits $273m to private equity

The pension system plans to commit $1 billion to private equity and venture capital this year, so far it has committed $472 million.

The Massachusetts Pension Reserve Investment Board has committed a total of $273 million to four private equity funds, since its 2 April board meeting, according to documents from the system’s Tuesday meeting.
  
The Boston-based pension fund committed $30 million to growth equity fund, WestView Capital Partners III. Its middle market-buyout fund commitments included $25 million to Thoma Bravo Opportunities Fund I and $26 million to HIG Europe Capital Partners II. The system also pledged $192 million to CVC Capital Partners VI, a large buyout fund, according to the documents.
 
Boston-based WestView is targeting $430 million for its third fund, according to documents filed with the US Securities and Exchange Commission. The fund already has enough demand to meet its target, which leaves little room for new capital, a market source told Private Equity International earlier. Founded in 2004 by Richard Williams, former Tudor Investment Corporation partner and Carlo von Schroeter, former general partner at Weston Presidio, Westview’s debut fund, a 2009 vintage, closed on $195 million.
 
Thoma Bravo’s first opportunities fund is targeting $400 million and will invest alongside the firm’s tenth fund, “when additional funds are needed”, a spokesperson previously told PEI.  It will focus on finance, consumer goods and technology sectors in North America. The San Francisco Employees’ Retirement System also committed to the fund earlier this year, according to PEI’s Research and Analytics Division.
 
HIG’s fund stopped fundraising after just three months in the market. It was significantly oversubscribed and closed on €825 million, above its €750 million hard-cap. The firm has four European offices including London, Paris, Hamburg and Madrid, according to its website. Maine Public Employees Retirement System and Pennsylvania State Employees’ Retirement System also committed to the fund.
 
CVC turned away investors for its flagship fund—raising €10.5 billion, a source familiar with the matter told PEI Monday. The UK-based firm reached its hard-cap and turned away €3.5 billion of additional capital. While the fundraising is officially at a first close, sources say it is unlikely CVC will accept more capital. LPs who committed before the fund’s first close received a management fee discount of 7.5 basis points.
  
This year, MassPRIM plans to commit $1 billion to private equity and venture capital. So far it’s pledged $472 million including these commitments, the documents read.

MassPRIM has committed more than $14 billion to private equity since inception, as of 30 June. Its net IRR since inception is 12.7 percent, as calculated by Hamilton Lane, the documents revealed. The system’s first committed to private equity in 1986, according to PEI’s data.