Pennsylvania pension makes $130m in commitments

The $34bn Pennsylvania State Employees’ Retirement System has reached its target allocation for private equity and real estate with four new commitments.

Pennsylvania State Employees’ Retirement System (PA SERS) has approved four new commitments to private equity and real estate funds totaling $130 million (€83 million).

The $34 billion pension plan, responsible for the retirement benefits of roughly 215,000 members, has made commitments of up to $15 million in Lightspeed Venture Partners VIII, up to $40 million in Sankaty Credit Opportunities IV and up to $50 million in TPG Partners VI.

TPG’s latest vehicle is targeting up to $20 billion in commitments, according to recent reports, and expects to invest between $250 million and $1 billion of equity in operating companies with market valuations of $300 million or more.

Lightspeed Venture Partners provides early stage venture capital to technology companies. Boston-based Sankaty targeted $2 billion for their previous fund, Sankaty III, which focussed on distressed debt, mezzanine investments and other special situations.

PA SERS has also committed $25 million to Prudential Real Estate Investor’s Senior Housing Partners Fund IV, which is targeting the senior housing and assisted living sector.

A PA SERS spokesman said the pension fund had reached its target allocations for private equity and real estate, at 14 percent and eight percent respectively.

“We have been in this space for a long time and some of the funds we invested in eight to 10 years ago are now maturing,” he said. “We are reinvesting that capital to maintain our allocation levels.”