PSERS approves $100m commitment

• Name: Pennsylvania Public School Employees’ Retirement System
• HQ: Harrisburg, US
• AUM: $76 billion
• Allocation to alternatives: 32.1%

Pennsylvania Public School Employees’ Retirement System has confirmed a $100 million commitment to Greenoaks Capital Opportunities Fund V, according to materials from the pension’s Allocation Implementation Committee.

Greenoaks Capital Partners, founded in 2012, is a San Francisco-based investment firm focused on identifying and investing in growth stage, tech and internet-enabled businesses. Fund V launched in 2022 seeking $2.25 billion in investor commitments, with a hard-cap of $2.7 billion. PSERS has an ongoing relationship with Greenoaks, having committed $100 million to the third fund in the series in October 2020.

Fund V aims to make meaningful, long-term investments in businesses capable of growing free cashflow at above market rates over long periods of time. While Greenoaks does not prescribe geographic targets or limits for the Fund, the estimated exposure will be 50 percent North America and 50 percent international.

PSERS currently allocates 15.9 percent of its investment portfolio to private equity, comprising $12.08 billion in capital. The $76 billion public pension has a target allocation of 12 percent to the asset class. Within their private equity allocation, 71.4 percent of capital is slated for investment in buyout vehicles, with a further 20.1 percent allocated to growth/venture vehicles. The remaining 8.5 percent of exposure is distributed to internal co-investment vehicles.

As illustrated below, PSERS’ recent private equity commitments have tended to focus on North American growth equity vehicles that invest in the TMT sector.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments.