PRIM appoints PE expert to investment committee

Phil Rotner had served as managing director of private equity at the MIT endowment.

The Massachusetts Pension Reserves Investment Management Board added a new member to its investment committee who will focus on private equity.

Phil Rotner, chief investment officer of the Boston Children's Hospital Foundation, was appointed to the investment committee and attended his first meeting on 1 August.

Prior to joining Children's, Rotner worked for 18 years at the Massachusetts Institute of Technology Endowment, where he served as managing director of private equity. In his career, he also worked at Bank of Boston and Bank of Tokyo Trust Company.

He replaces Ed Kane, a HarbourVest founder who stepped down last year after six years on the committee.

“He was our resident private equity expert, and he was invaluable to me and to the team during a very difficult time,” Michael Trotsky, chief investment officer of PRIM, said of Kane during the pension's May meeting, alluding to Kane's help staffing the entire private equity team at PRIM six years ago. 

Minutes of the May meeting were released earlier this week.

Private equity was the best performing asset class at the pension for the 12 months ended 30 June, returning 21.3 percent gross of fees, in line with its benchmark. Three-, five- and 10-year returns were 16.3 percent, 17.9 percent and 13.4 percent, respectively.

At its most recent meeting on 15 August, the board approved several private equity commitments, including:

– a $200 million commitment to GTCR Fund XII, which is seeking to raise $4.5 billion to invest in the mid-market;

– a $150 million commitment to Charlesbank Equity Fund IX, which is targeting $3.45 billion;

– an $80 million commitment to Insight Venture Partners X, which is targeting $5.5 billion for growth-stage investments;

– and a €50 million commitment to Waterland Private Equity Fund VII, which is looking to raise €1.75 billion to invest in Western Europe.

It also added Waterland on its list of approved co-investment managers.

The Pension Reserves Investment Trust had $67 billion in total assets as of 30 June with a 10.6 percent actual allocation to private equity. The target allocation for private equity was increased to 11 percent from 10 percent in February.