MassPRIM outlines 2021 private equity pacing plan

The US public pension could see the total value of its private equity commitments increase by $600m year-on-year should its upper commitment range be met.

Institution: Massachusetts Pension Reserves Investment Management
Headquarters: Boston, US
AUM: $83.33 billion
Allocation to private equity: 11.9%

Massachusetts Pension Reserves Investment Management set out its proposed 2021 private equity commitment pacing plans at its February 2021 investment committee meeting, a contact at the pension informed Private Equity International.

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Highlights from MassPRIM’s February 2021 investment committee meeting:

  • MassPRIM will increase its target allocation range to private equity from 11-16 percent to 11-17 percent of the pension’s full investment portfolio. Were the pension’s private equity allocation to reach 17 percent, it would be valued at more than $14 billion.
  • The pension has set its fund commitment pacing target for 2021 at $2.1 billion to $2.7 billion for the 2021 calendar year, which represents an upwards shift in last year’s range of $1.7 billion to $2.3 billon. Actual private equity commitments by MassPRIM in 2020 totalled $2.05 billion – around halfway between the lower and upper limits of the suggested range.
  • MassPRIM will target an increase in its co-investment capacity as a proportion of anticipated 2021 commitments to around 20 percent. $480 million has been sounded out by the pension for potential investment in private equity co-investment opportunities.
  • The pension will continue to source and allocate to diverse private equity investment managers in 2021.

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Notable private equity commitments made by MassPRIM in 2020 included $309 million to CVC Capital Partners VIII; $485 million across three vehicles managed by Thoma Bravo ($275 million to Fund XIV, $150 million to Discover Fund III and $60 million to Explore Fund); and $273 million to GTCR Fund XIII.

MassPRIM also confirmed the promotion of Michael McGirr from senior investment officer to director of private equity following the departure of long-time private equity head Michael Bailey to Fidelity Investments at its February 2021 meeting. McGirr joined MassPRIM as a senior investment officer within the private equity team in April 2014. Previously, McGirr worked within alternatives at Bain Capital and Minnesota State Board of Investment.

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