Pennsylvania State Employees’ Retirement System, Harrisburg, made commitments to three private equity funds totaling $305 million, confirmed Pamela Hile, spokeswoman for the $27 billion pension plan.
At its Wednesday meeting, the board approved a commitment of up to $100 million to Apollo Investment Fund IX, a buyout fund managed by Apollo Global Management focused on distressed opportunities, corporate carve-outs and opportunistic buyouts primarily in North America and including Western Europe.
The board also approved a commitment of up to €94 million ($105 million) to CVC Capital Partners VII, a European buyout fund that targets investment in middle-market companies in the beverage, chemicals, consumer services, manufacturing, distribution, media, retail and technology sectors.
Finally, the board committed up to $100 million to Insight Venture Partners X, a growth equity fund focused on growth-stage software, software-enabled services and Internet companies.
The commitments will be funded by cash and are subject to successful contract negotiations.
Separately, PennSERS generated a 3.7% net return during the first quarter of 2017. It returned 9.7% for the year ended March 31, and 7.4% and 8.4% over the trailing 20- and 30-year periods, respectively, ended March 31.
Returns broken down by asset class for the quarter were: 6.9% for global equities; 1.9% fixed income; 1.4% hedge funds; 0.6% private equity; 0.2% cash; and flat for real estate.