New York State Teachers' commits to CVC

The system – like many LPs – had strong distribution activity in the second quarter, extending its private equity portfolio’s cash positive streak that has been running since 2011.

The New York State Teachers' Retirement System revealed in its latest board documents that it committed €200 million to CVC Capital Partners Fund VI, which has already reached its €10.5 billion cap after only a few months in the market. 

The commitment from NYSTRS closed on 28 June, according to board documents. Other commitment activity included $30 million to Highland Capital Partners IX, which closed on 29 March, and $150 million to Olympus Growth Fund VI, which closed on 14 May, according to board documents. Highland recently held a first close on Fund IX on $300 million, well on its way to its $400 million target. 

Olympus is targeting $2.5 billion for Fund VI, and held a first close in May on more than $1.7 billion. 

As of 30 June, 2013, NYSTRS had 165 active partnerships across 79 private equity and venture capital firms. Since inception, the private equity portfolio has generated a net internal rate of return of 11 percent through 31 March, 2013. 

The system has about $15.5 billion in active commitments to private equity, according to the documents. Unfunded commitments totaled $4.2 billion at the end of fiscal year 2013, the system said in documents. 

Like many other LPs, NYSTRS has enjoyed strong distribution activity from its private equity portfolio. The system reported $364 million in distributions in the second quarter, compared to $212 million in contributions to existing partnerships (including fees), NYSTRS reported. The portfolio has been cash positive on a net basis since 2011, the system said. 

Cambridge Associates revealed earlier this month that US private equity distributions reached $48.6 billion during the fourth quarter of 2012, the largest quarterly distribution on record. Distributions shot up about 123 percent compared to the previous quarter, taking total distributions for the year to $118 billion – the highest figure in the 27 years since the inception of Cambridge’s US Private Equity Index.

Capital calls, on the other hand, stood at about $71.3 billion for 2012, down from $94 billion in 2011.