South Carolina returns to separate accounts

The $26.2bn system has committed $750m to a ‘strategic partnership’ with TCW spin-out Crescent Capital Group. South Carolina previously set up a $759m separate account with Apollo Global Management in 2009.

The South Carolina Retirement System Investment Commission has established a $750 million strategic partnership with TCW spin-out Crescent Capital Group, pension spokesman Adam Jordan told Private Equity International.

The separately managed account will invest in credit strategies and appears to be similar to a $759 million partnership the $26.2 billion system established with Apollo Global Management in 2008 called the Apollo Palmetto Strategic Partnership, which included a $9 million commitment from the Leon Black-led firm.  

South Carolina also has four other strategic partnerships of various sizes with Goldman Sachs, Mariner Investment Group, Morgan Stanley and TCW, all of which were established in 2008, according to the system's 2010 annual report. The strategic partnerships invest in private equity, opportunistic credit, real estate, direct co-investments, real assets and absolute return strategies, the report said. Each partnership has its own investment committee, and all managers are required to invest a 'meaningful amount' of capital in the partnership.

South Carolina's partnership with Crescent Capital Group does not have a timeline for deploying the $750 million. Further information on the separate account was not available at press time.

The partnership with Crescent was unveiled at the pension’s recent public meeting, during which South Carolina also announced a $100 million re-up investment with UK-based Mondrian Investment Partners’ emerging debt fund, the target of which could not be determined at press time.

Other recent commitments include €50 million each in re-up investments to Oaktree European Principal Fund III, targeting €2.5 billion, and Apax VIII, which has a €9 billion target.

South Carolina has also committed $75 million each to Brookfield Real Estate Finance Fund III and Oaktree Real Estate Opportunities Fund V.

In June 2010, the pension lost director of public and private equities Hilary Wiek, who left to join consultant Rogerscasey.  Wiek had been with the South Carolina Investment Commission since 2007.