Pennsylvania State Employees' Retirement System, Harrisburg, approved a total of $700 million in commitments, confirmed Pamela Hile, spokeswoman for the $27.6 billion pension system.
At its meeting on Wednesday, the PennSERS board approved a commitment of up to $150 million to TSSP Adjacent Opportunities Partners, a high-yield special situations fund managed by TPG.
The board also approved a follow-on commitment of up to $50 million to GTCR Fund XII, which focuses on middle market buyout investments in high-growth companies in North America.
Within real estate asset, the board approved commitments of up to $50 million to SRE Opportunity Fund III, an opportunistic commercial real estate fund managed by Singerman Real Estate, with an additional $50 million to a discretionary co-investment fund. It also agreed to commit $100 million to C-III Recovery Fund III, a value-added commercial real estate fund managed by C-III Capital Partners; and $300 million to Blackstone Property Partners, an open-end core-plus real estate fund managed by Blackstone Group.
The commitments will be funded by cash, subject to successful contract negotiations.
The board also approved reallocating $200 million from cash to an existing Mellon Capital Management U.S. Aggregate Bond index fund.
Separately, PennSERS announced a 3.3% return for the second quarter of 2017. For the year ended June 30, the fund earned 7.2% net of fees.
Returns by asset class for the year ended June 30 were: global equities, 12%; private equity, 5.1%; fixed income, 3%; hedge funds, 2.2%; real estate, 0.9%; and cash, 0.8%.