PSERS confirms $100m commitment

The Harrisburg-based pension has backed Incline Equity Partners' second North American buyout vehicle.

Institution: Pennsylvania Public School Employees’ Retirement System
Headquarters: Harrisburg, US
AUM: $64.37 billion
Allocation to alternatives: 20.6%

Pennsylvania Public School Employees’ Retirement System has approved a $100 million commitment to Incline Elevate Fund II at its October board meeting, a contact at the pension informed Private Equity International.

The fund seeks to invest in the business and manufacturing sectors, and follows its predecessor, Incline Elevate Fund I, which closed in July 2019 after five months on the road. That fund surpassed a $250 million target, raising $314.5 million in investor capital.

This commitment continues the relationship between PSERS and Incline Equity Partners, with the $64.37 billion public pension having also backed the Incline Elevate Fund I and Incline Equity Partners V in the last two years.

PSERS allocates 13 percent of its total investment portfolio to private equity, which encompasses $8.37 billion in value, but is aiming for a private equity target of 15 percent.

As illustrated below, PSERS’ recent private equity commitments have tended to focus on global growth equity vehicles that specialise in the TMT and manufacturing sectors.

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