MassPRIM pays $1.5 billion to private equity managers over 5 years but gained $4.7 billion

(updated with correction)

Massachusetts Pension Reserves Investment Management Board, Boston, paid $1.5 billion in fees to private equity managers over the past five years, according to a memo to the board from the $62.7 billion pension fund obtained by Pensions & Investments.

The roughly 120 managers that were active for MassPRIM during the five-year period ended Dec. 31 earned a total of about $1 billion in carried interest and approximately $483 million in annual management fees.

During this period, MassPRIM’s private equity portfolio returned an annualized 16.17% — or $4.7 billion — net of all annual management fees and carried interest.

Data from the pension fund show that capital distributed back to MassPRIM from its private equity investments over the past five years totaled $8.1 billion. Capital invested by MassPRIM to private equity over this time period totaled $5.3 billion. The pension fund’s current private equity portfolio as of Dec. 31 had $6.76 billion in assets.

MassPRIM’s private equity portfolio was the Pension Reserves Investment Trust’s highest-performing asset class, net of all annual management fees and carried interest over this time period.

Data from the pension fund show that capital distributed back to MassPRIM from its private equity investments over the past five years totaled $8.1 billion. Capital invested by MassPRIM to private equity over this time period totaled $5.3 billion. The pension fund's current private equity portfolio as of Dec. 31 had $6.76 billion in assets.

MassPRIM's private equity portfolio was the Pension Reserves Investment Trust's highest-performing asset class, net of all annual management fees and carried interest over this time period.