PSERS re-ups $20m to Eureka Growth Capital

Eureka Growth Capital has collected about $83m for its third buyout fund, which is targeting $150m for lower mid-market technology investments in the US.

The Pennsylvania State Employees’ Retirement System has committed $20 million to Eureka Growth Capital’s Fund III, according to documents from the pension’s Wednesday board meeting.
 
Fund III is targeting $150 million, according to documents filed with the US Securities and Exchange Commission, and had raised about $83 million as of 29 August. The investment is a re-up commitment for PSERS, which previously committed $20 million to Eureka’s $130 million Fund II in 2005. Fund II closed above its $100 million target.

Eureka III will focus on lower mid-market technology and support services investments in the US Mid-Atlantic region, according to PSERS documents. 

Eureka did not return a request for comment by press time. 

PSERS’ alternative investments consultant for the commitment to Eureka III was StepStone Group.

The commitment helps PSERS edge closer to its 65 percent target allocation for alternatives, according to pension documents.  PSERS’ alternatives allocation stood at about 63 percent as of 31 March. 

The pension’s overall investment portfolio generated a 0.7 percent return for the second quarter of 2013 and 4.3 percent for the first half of the year, according to pension documents. Its alternative investments portfolio posted the highest returns at 3 percent.

PSERS recently committed $50 million to Platinum Equity’s third fund, which closed on $3.75 billion earlier this month. PSERS also pledged $100 million to Triton Partners’ fifth vehicle, which exceeded its hard-cap by raising €3.3 billion in May.