The $154.5 billion (€99 billion) New York State Common Retirement Fund has committed $203 million to four diverse private equity funds as part of its drive to increase its exposure to private equity. Last year, its 6.5 percent allocation to the asset class resulted in a 28.7 percent return.
“[Private equity] certainly is an area that we’ve done very well in,” said a spokesman. “It's been one of the top returners for our portfolio.”
The pension fund committed $158 million to Bridgepoint’s fourth European buyout fund, which a source recently told PEO may hit its €5 billion hard cap. New York’s Common Retirement Fund has been investing in Bridgepoint since 1998.
The pension also established three new relationships with smaller firms via a $20 million commitment to FIMI Opportunity IV, an Israeli buyout and mezzanine specialist; $15 million to N+1 Private Equity Fund II, a Spanish small to mid-market specialist; and $10 million to Craton Equity Partners I, a Los Angeles based clean tech and venture firm.
Arvco Capital served as a placement agent for the Craton commitment. All of the other investments took place without the aid of placement agents.
The New York pension plan, which manages the retirement assets of more than one million public workers, has an 8 percent target allocation for private equity.