PSERS commits over $200m to private equity

The Pennsylvania Public School Employees’ Retirement System has approved allocations to buyout, energy, and Asia funds.

The Pennsylvania Public School Employees’ Retirement System has approved three new private equity commitments, according to recently released meeting documents.

PSERS will allocate up to €150 million plus reasonable normal investment expenses, to Bridgepoint’s Europe V fund. The fund launched in April, with a target of €3.5 billion and €4 billion according to Private Equity International’s research and analytics division.  Bridgepoint focuses on buyout, growth equity, consolidation, and public-to-private transactions across a variety of industries.

The pension system will also allocate $100 million to NGP’s Natural Resources XI fund. That fund launched in January of this year, with a $4.5 billion target to invest in energy and energy exploration companies. NGP is also in the market for a $320 million agribusiness follow-on fund.

Finally, PSERS will invest $75 million in Orchid’s Asia VI fund, which makes growth investments in the consumer services and products, outsourced manufacturing, and services sectors in Asia. The target for the Asia VI fund is undisclosed, however, Orchid’s predecessor Asia fund closed on $650 million in 2011.

In aggregate for the quarter ending March 31, 2014 PSERS posted a positive return of 3.61 percent, adding nearly $1.7 billion to the fund.  The pension has $51.4 billion in net assets under management.