NIC publishes private equity pacing plan review

The Lincoln-based pension plan proposes a private equity tactical plan for 2021.

Institution: Nebraska Investment Council
Headquarters: Lincoln, US
AUM: $34.8 billion
Allocation to alternatives: 23.2%

Nebraska Investment Council has revised its pacing plan for private equity investment, according to meeting materials released on the pension’s website.

The proposed tactical plan for fiscal year 2021 includes a review of capital committed in the previous fiscal year and projected allocation for 2021 segmented by private equity investment strategy.

The pacing plan indicates that $150 million is being targeted in total private equity capital commitment for fiscal year 2021. Last year, the pension allocated $200 million to the asset class across four fund commitments.

The commitments in 2020 comprised $50 million each to Resolute Fund V, New Mountain Partners VI, Francisco Partners VI and McCarthy Capital Fund VII.

As for 2021, NIC has so far committed $50 million to Genstar Capital Partners X and $20 million to Ironsides Partnership Fund VI. A potential $50 million commitment to Bridgepoint Europe VII has been mooted but not yet confirmed.

The $34.8 billion public pension fund has a target allocation of 5 percent for private equity, which currently stands at 9.90 percent. The targeted reduction in total annual commitments to private equity is a direct result of NIC attempting to move its allocation to the asset class closer to its target.

As illustrated below, NIC’s recent private equity commitments have predominantly targeted US buyout funds.

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