MassPRIM commits to Wayzata

At its April meeting, the $50bn system made a $150m commitment to Wayzata Investment Partners' third fund, which is targeting small and mid-market investments in distressed debt and special situations.

The Massachusetts Pension Reserves Investment Management Board committed up to $150 million to Wayzata Investment Partners’ third opportunities fund at its meeting Tuesday. 

Wayzata is targeting $2.5 billion for its third fund, which will focus on control oriented investments in the small to middle market. The fund will specialise in companies undergoing bankruptcy, restructurings or reorganisations, according to MassPRIM documents. The investments will be made through public debt securities and bank debt in companies with up to $750 million in outstanding debt. 

The firm’s previous fund, which raised $3.4 billion in 2007, was generating a net internal rate of return of 15.9 percent and a 1.7x investment multiple as of 30 June, 2011, according to California Public Employees’ Retirement System documents. 

MassPRIM, which has an existing relationship with Wayzata, made the investment through its alternative fixed income portfolio.

In addition to Wayzata, the $50 billion pension system also committed to three venture capital funds totaling $35.3 million, including $12 million for Ascent Venture Partners and $23.3 million across two funds from Index Ventures. 

MassPRIM manages almost $50 billion in assets, including an 11.1 percent allocation to private equity and a 6.9 percent allocation to value-added fixed income. The retirement system maintains a long-term target of 10 percent to both asset classes, according to state documents. 

Earlier this year, the retirement system released plans to invest as much as $1 billion in private equity in 2012, as well as $700 million in private debt. MassPRIM committed nearly $1 billion in private equity and venture capital last year, allocating $842 million to private equity and $118 million to venture capital.

At its last meeting, MassPRIM re-upped up to $175 million to Oaktree Opportunities Fund IX through its fixed income allocation.