MassPRIM targets $1bn for private equity(2)

The $50.6bn retirement system set goals to commit up to $1bn to private equity and $700m to alternative fixed income, according to MassPRIM documents.

The Massachusetts Pension Reserves Investment Management Board approved a 2013 private equity strategic plan at its meeting last week, a spokesperson told Private Equity International.

MassPRIM’s strategic plan calls for up to $1 billion in commitments for private equity along with $700 million to alternative fixed income strategies. The $50.6 billion retirement system’s 2012 strategic plan called for similarly sized allocations, though it ultimately committed only $736 million to private equity and $575 million to alternative fixed income, according to documents. 

The 2013 strategic plan calls for a continued focus on “core, strong performing manager relationships” along with more exposure to small/mid-market buyouts and emerging markets. MassPRIM also will continue to utilise its emerging manager programme, which targets investments in minority and women-owned firms, according to documents. 

In addition to approving its 2013 strategic plan, MassPRIM’s board also approved $85 million in commitments to venture capital funds, the spokesperson said. Those commitments included up to $30 million for Battery Ventures X and $30 million for an affiliated co-investment vehicle. 

MassPRIM also committed $25 million to Spark Capital’s fourth fund. Spark typically invests in the advertising, monetisation, commerce, services, cloud/infrastructure, social, mobile and content sectors. 

MassPRIM has a 12.2 percent allocation to private equity on a 10 percent target, according to documents.