PSERS commits $184 million to private equity

HGGC and Equistone pick up commitments from the pension

The Public School Employees’ Retirement System of Pennsylvania has committed approximately $184 million to two funds in its latest private equity allocation, according to recently released meeting documents.

The commitments are notable as the pension held a significant secondaries auction of private equity stakes as PEI reported earlier this month. At the time, the pension said the sale was part of a broader effort to clean house and jettison non-core relationships.

PSERS will commit €75 million to Equistone Partners Europe Fund V. Equistone, the private equity spin out from Barclays is currently in market with its latest Europe focused vehicle, targeting $1.75 billion. The firm focuses on middle market European buyouts.

The fund is slightly larger than Equistone’s Europe Fund IV, which closed on €1.5 billion in 2013, according to Private Equity International’s research and analytics division. Known investors in that fund include the California State Teachers’ Retirement System (CalSTRs). According to CalSTRs performance data, Fund IV has an IRR of 25.55 percent.

Another $100 million will go to HGGC Fund II, a $1 billion vehicle. HGGC is co-founded by former NFL Quarterback Steve Young. The fund is already partially invested, with the firm’s buyout of troubled software company Serena.