MassPRIM putting $85 million into private equity
By Kevin Olsen | February 6, 2013 12:43 pm
Massachusetts Pension Reserves Investment Management Board, Boston, committed up to $85 million to two private equity managers, confirmed Michael Trotsky, executive director and chief investment officer.
The board, which oversees the state's $52 billion Pension Reserves Investment Trust fund, committed up to $30 million each to Battery Ventures X, a venture capital fund that invests in the technology markets, and Battery Ventures X Side Fund, a co-investment that allows for larger investments in the firm's growth and buyout investments.
MassPRIM also committed up to $25 million to Spark Capital IV, a venture capital fund that provides startup capital to companies leveraging new technologies for the media and entertainment industry. PRIM has committed to all three predecessor funds.
Separately, the board announced it returned 13.9% for calendar year 2012, outperforming its benchmark by 84 basis points, Mr. Trotsky said in a telephone interview. Five of the seven asset classes topped their benchmarks and the other two, real estate and private equity, were flat, he added.
Global equity led the way with a 17.5% return — emerging markets, 19.3%; international, 17.7%; and domestic, 16.9%. Following global equity returns were private equity, 15.8%; value-added fixed income, 15.2%; real estate, 14.3%; hedge funds, 8.42%; core fixed income, 6.4%; and timberland/natural resources, 4.8%.
Hedge funds had the greatest outperformance, topping the HFRI Fund of Funds Index benchmark by 3.6 percentage points. PRIM moved its hedge fund-of-funds portfolio into direct hedge fund investments last year.