Pennsylvania pension commits $115m to four funds

The $35bn Pennsylvania State Employees’ Retirement System commits further funds to PE after returning 41 percent from the asset class last year.

The Pennsylvania State Employees’ Retirement System has made four new commitments totaling $115 million (€64 million) to private equity funds.

The $35 billion (€23 billion) public retirement system, known as PA SERS, said in a statement it had made follow-on commitments of up to $40 million to ABS Capital Partners VI and up to $50 million to Lime Rock Partners V. PA SERS also allocated up to $50 million to Madison Dearborn Capital Partners VI, and up to $15 million to Versa Capital Partners II.

The pension board, which met yesterday, also said it had committed $100 million to private equity real estate funds including $25 million to Lubert-Adler Real Estate Fund VI in a follow-on investment and $75 million to a new fund of funds operated by Clerestory Capital Partners, Oculus Small Cap Real Estate Fund I.

The pension allocates around 13 percent to private equity and, as reported on PEO, saw 41 percent returns compared to 23.2 percent in 2006 – making private equity the pension’s top performing asset class. Real estate investments returned 22.6 percent during 2007 compared to 17.6 percent in 2006. Overall returns on investments last year were 17.2 percent, which it said was nearly double the median return for large US public pensions, surpassing its 12.8 percent benchmark.