MassPRIM has $570m remaining for PE in 2012

With $431m committed, MassPRIM has a long way to go to reach the $1bn target allocation it has set for private equity and venture capital in 2012.

The Massachusetts Pension Reserves Investment Management Board has committed $431 million to private equity and venture capital this year, well short of the $1 billion it had earmarked for the asset classes in its 2012 investment plan, according to retirement system documents. 

With almost $570 million to invest between now and the end of the year, MassPRIM executive director Michael Trotsky said the $49 billion retirement system remains on pace. 

“We are on schedule with our private equity investments,” he said in an email. “[$1 billion] is a goal, not a commitment depending on opportunities and overall asset allocation trends.”

MassPRIM’s commitments this year include investments in Advent International’s seventh fund, Institutional Venture Partners XIV and Nordic Capital Fund VIII. 

The retirement system had also set a $1 billion investment target for private equity and venture capital last year, but ultimately committed only $842 million to the asset classes.  

One area where MassPRIM has increased its allocation over last year is alternative fixed income. The retirement system invested $375 million across three debt funds in 2011, a total it has already surpassed this year with $575 million in commitments to funds like Oaktree Opportunities Fund IX, Centerbridge Special Credit Partners II and HIG Bayside Loan Opportunity Fund III. MassPRIM’s 2012 investment plan calls for $700 million to alternative fixed income. 

MassPRIM had a 12 percent allocation to private equity as of 31 July, according to retirement system documents. The retirement system has a 10 percent target allocation for the asset class.