The Pennsylvania State Employees’ Retirement System will make up to approximately $60 million (€43 million) in new private equity fund commitments, half of which will go to Advent International’s fourth Latin American fund.
“There has been an emphasis here on achieving greater global exposure,” Robert Gentzel, PA SERS spokesperson, told PrivateEquityOnline. “This was an attractive opportunity in Latin America, but I think you have to see it in the context of our other investments throughout the world.” The $33 billion pension fund has made investments in Asia-focused funds as well as a real estate fund with an emphasis on Mexico, he said.
Its latest commitment to a Latin America-focused fund is “part of this larger puzzle of seeking to expand the portfolio, and realign the portfolio to achieve greater exposure to global markets”, Gentzel said.
In addition to its $30 million commitment to Advent Latin American Private Equity Fund IV – the successor to the $375 million Latin America fund the Boston-based firm closed in 2005 – PA SERS has allocated up to $15 million for PNC Equity Partners II. It has also approved up to €10 million for Alpha Private Equity Fund 5, a follow-on commitment to a previously approved €60 million commitment to the Franco-German firm’s fund, which closed on €750 million in February 2006.
PA SERS’ board has also voted to retain Boston-based Cambridge Associates as its alternative assets investment advisor.