Institution: School Employees’ Retirement System of Ohio
Headquarters: Columbus, US
AUM: $18 billion
Allocation to alternatives: 27.6%
School Employees’ Retirement System of Ohio has published its annual investment plan, setting out private equity investment objectives for the next fiscal year.
The pension fund’s private equity portfolio has performed higher than its benchmarking index. After successfully navigating the events of 2020, running through to 2021, the standpoint of private equity investments remains positive for SERS Ohio.
The FY 2022 objectives are:
- Govern the private equity portfolio and fiscal year commitments to reflect the increased investment allocation of 12 percent of the entire portfolio by the end of the fiscal year 2022. The investment will be subject to SERS’ commitment criteria
- Reviewing of the private equity portfolio strategies and structures to develop a plan to enhance the risk-return characteristics of the holdings. Achieve fee reduction and optimise manager counts where appropriate.
- Actively seek co-investment opportunities that adhere to SERS’ current private equity co-investment criteria and guidelines.
- The current areas of interest include China and Asian-focused private equity vehicles, niche venture capital, GP led secondaries and investments managed by emerging and minority managers.
The $18 billion pension fund has approved over $300 million-worth of commitments across five private equity vehicles. The commitments comprise $75 million apiece to Greenspring Secondaries Fund V and Monomoy Capital Partners V, $65 million to Primus Capital Fund IX and $50 million to LLCP Lower Middle Market Fund III and SSC Partners II.
Currently, SERS Ohio allocates 10.2 percent of its investment portfolio to private equity. The target allocation of 12 percent falls between the permissible range of 8-16 percent outlined in the annual investment plan.
Illustrated below are the recent fund commitments, private equity portfolio composition and the pension’s full investment portfolio.