Ohio commits €30m to Cinven

The midwest pension fund has re-upped to Cinven’s latest vehicle as the pan-European firm seeks to raise about €7bn.

The investment authority of the School Employees' Retirement System of Ohio (OHSERS) has approved a €30m commitment to the Sixth Cinven Fund, according to meeting minutes from the pension fund. 

Cinven has raised more than €7 billion for its sixth flagship vehicle that is near to a final close, as reported by Private Equity International

OHSERS previously invested $30 million in the Fifth Cinven Fund, which held a final close on €5.3 billion in 2012, above its €5 billion target, according to PEI Research & Analytics. OMERS investment in that fund was generating a net internal rate of return of 19 percent and 1.3x investment multiple, as of February 2016, according to minutes. 

OHSERS' total investment portfolio returned 0.92 percent, net of fees, during the third quarter of 2016, which was below the policy benchmark of 1.10 percent. The US equity, private equity, fixed income and real assets portfolios all recorded gains, but only private equity and real assets portfolios exceeded their benchmarks, according to the minutes. 

Ohio School Employees' Retirement System did not return the request for comment by press time. Cinven declined to comment. 

Last year, OHSERS made a €50 million commitment to BlueBay Direct Lending Fund II, a European direct lending strategy and a €30 million commitment to Babson Capital Global Special Situations Credit 2, a distressed corporate debt strategy, according to PEI Research and Analytics.

Cinven, founded in 1977, has €12 billion assets under management. The firm specialises in European investments requiring an equity investment of €100 million or more. Cinven's main focus is on Europe, with portfolio teams in Hong Kong and New York and targeting healthcare, technology, media and telecommunications, industrials, consumer goods, business services and financial services.

The School Employees' Retirement System of Ohio, founded in 1937, has $12.55 billion assets under management. The pension fund provides pension benefits and access to post-retirement healthcare coverage to Ohio's active and retired non-teaching public school employees. OHSERS has invested in a range of North American private equity funds, with some commitments to European vehicles.