PSERS makes nearly $1bn in new commitments

The Pennsylvania pension fund invested in a an array of strategies including debt funds, secondaries and buyout funds.

The Pennsylvania Public School Employees Retirement System (PSERS) approved investments in two new European-focused debt funds at a recent board meeting. 

The pension fund is allocating $200 million to the Hayfin Special Opportunities Fund II. London-based Hayfin Capital Management is targeting predominantly senior secured loans in Western European mid-market companies in this strategy. The fund will aim to make 45 to 55 investments that will range from €10 million and €40 million in size and two to four years in maturity. 

The $45.8 billion pension plan is also investing up to £75 million ($109 million; €95 million) with the Pramerica Real Estate Capital VI, a European real estate debt fund from Pramerica Real Estate Investors, which is US insurer Prudential’s European real estate arm. Pramerica is raising up to £1 billion in this vehicle.

The pension fund’s real estate consultant, Courtland Partners, advised on the Pramerica investment, as well as another real estate commitment, a $200 million cheque sent to the Brookfield Strategic Real Estate Partners II.

PSERS’ also made another European investment by doling out €100 million to the Sixth Cinven fund, which focuses on European buyouts. The fund is targeting €5.5 billion, according to the PSERS documents. It plans to invest €150 million to €600 million of equity primarily in Western European companies in the healthcare, industrials, TMT, consumer, business services and financial services sectors.

The pension’s private markets consultant Portfolio Advisors assisted with due diligence on the Cinven and Hayfin investments, as well as a $250 million commitment to the Strategic Partners Fund VII and a $100 million investment in the L Catterton Partners VIII. 

The Blackstone Group’s Strategic Partners Fund Solutions business invests in private equity secondaries. 

L Catterton’s eighth fund is targeting $2.5 billion and plans to build a portfolio of North American mid-market growth companies in the consumer sector.