Institution: Rhode Island State Treasury
Headquarters: Providence, US
AUM: $10.2 billion
Allocation to alternatives: 20.2%
Rhode Island State Treasury has approved $100 million-worth of commitments across three private equity vehicles, according to its monthly board meeting minutes.
The commitments comprise $50 million to Nautic Partners X, $30 million to Level Equity Growth Partners V and $20 million to Level Equity Opportunities Fund 2021. The 10th fund by Nautic Partners is currently in the market and is targeting $2.5 billion in LP commitments for healthcare, industrial sectors and business service buyout transactions in North America. Level Equity is also in the market and is seeking $900 million across two venture capital vehicles, which are sourcing software- and technology-based transactions in North America.
The target allocation for private equity has been revised upwards from 11.25 percent to 12.5 percent. The new target allocation will now include opportunistic and distressed debt-style investment.
The $10.2 billion pension’s current PE allocation is 10.4 percent. The pacing plan for private equity is set at $300 million worth of investments across five to 10 primary funds per fiscal year. Individual commitment values are planned not to exceed $20 million-$60 million.
As illustrated below, Rhode Island State Treasury’s recent fund commitments have predominantly targeted buyouts and growth equity investments in North America’s technology and business services sectors.
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