PASERS commits $75 million to private equity

Follow on investments from the pension reinforce its plan for fewer, bigger allocations

The Pennsylvania State Employees’ Retirement System (PASERS) has approved $75 million in new private equity allocations as it works through a revised allocation plan for 2014-15.

PASERS is allocating $25 million to ABRY Partners Fund VIII, as a follow-on investment in the growth-oriented buyout fund. The fund is focused on the TMT sector, as well as information and business services.

ABRY is currently in market with Fund VIII which has a target of $1.9 billion according to Private Equity International’s research and analytics division. The firm recently topped a ranking of the most sought after buyout funds released by Canadian advisory firm Setter Capital.

Earlier this month, ABRY sold York Risk Services Group to Canadian buyout shop Onex for $1.33 billion. The company offers customized claims handling, managed care, specialized loss adjusting, risk pool administration, loss control, consulting and other risk management services.

PASERS is also making an allocation of up to $50 million to Centerbridge Capital Partners III, follow-on investment for investments in distressed debt, middle market private equity, and special situations/structured financing.

PASERS says the commitment “enhances total fund liquidity by investing in shorter term strategies and supports the fund’s initiative to make fewer, larger commitments to top-tier managers as outlined in the 2014-2015 Strategic Investment Plan.”

Centerbridge Capital Partners III is currently in market with a $5.75 billion target.