NYSTRS commits $210m to private equity

The $88bn US pension system's recent commitments included new relationships with ICG Europe and Rhone Partners.

The New York State Teachers’ Retirement System has committed a total of $210 million to three private equity managers, according to pension documents.

The $88 billion retirement system committed $75 million to ICG Europe Fund V and $60 million to Rhone Partners IV, both of which represent new general partner relationships.

ICG Europe V, the firm’s latest European mezzanine and senior equity fund, held a final close on its €2.5 billion hard-cap last month. Fund V, which had a €2 billion target, is already nearly a quarter deployed, having made three investments in 2012.

Rhone Capital, which specialises in mid-market companies in the US and Europe in a variety of sectors, held a final close on €1.1 billion for its Fund IV last year, just shy of its $1.2 billion target.

NYSTRS also committed $75 million to ABRY Senior Equity IV, which closed on its $950 million target in December 2012. ABRY focuses on in companies in the media, communications, information and business services industries.

The firm’s senior equity funds invest between $15 million and $50 million in both companies the firm owns through its private equity funds and businesses owned by others. Investments are typically non-cash or partial-cash paying stock or subordinated debt. NYSTRS has previously invested a total of about $383 million in seven other ABRY funds.

NYSTRS has 159 active partnerships with 75 private equity and venture capital fund managers. The retirement system's private equity portfolio has generated a net IRR of 10.94 percent through 30 September, 2012, according to pension documents.

NYSTRS' private equity exposure is split between 50 percent in buyouts, 11 percent in venture capital, 20 percent in special situations and 19 percent in international funds.