The Massachusetts Pension Reserves Investment Management Board (PRIM) has committed more than $400 million to private equity at its February meeting.
The Boston-based pension plan, which manages $60 billion in assets, committed to several strategies including buyouts, venture capital and distressed debt.
It committed $175 million to Berkshire Fund IX, a mid-market fund targeting $5.5 billion to make buyout, growth equity and public securities investments, mainly in the US. PRIM has previously invested $178 million with Berkshire and the firm is also on the pension's list of approved co-investment managers.
It also committed $100 million to Thoma Bravo Fund XII, also an existing relationship. PRIM previously invested $520 million with Thoma Bravo. The new fund targets investments in the infrastructure software and technology services sectors and is targeting $7 billion. The firm is also on the pension's list of approved co-investment managers.
PRIM committed $125 million to Anchorage Capital's Anchorage Illiquid Opportunities V (AIOV), a private debt fund targeting $1.25 billion to invest in small to medium sized companies primarily in North America and Western Europe. Anchorage Capital is a credit-oriented firm with about $15.3 billion in assets under management. It follows three distinct strategies: long/short credit, short credit and less liquid credit.
“Anchorage Illiquid Opportunities V is an attractive investment for PRIM's distressed debt portfolio,” the pension wrote in a roundup of its new commitments.
“We view the exposure to be complementary to our current roster of distressed debt investors that focus on larger size companies. The team has a proven track record in investing in the strategy that AIO V intends to pursue, and PRIM has had a successful relationship investing with the team in its long/short credit fund.”
PRIM, which has a 4 percent allocation to distressed debt in addition to its 10 percent private equity allocation, previously invested $75 million in Anchorage Illiquid Opportunities IV, a 2013 vintage fund.
The pension plan also committed $15 million to VC firm Union Square Ventures' new early-stage USV 2016, which invests in companies in the web services, information technology, software and mobile communications fields.