Searches and Hires

New York State Teachers sets $1 billion in private equity commitments

New York State Teachers' Retirement System, Albany, made 10 private equity commitments totaling up to $1.06 billion.

The commitments were described in a document, posted on the pension fund's website and prepared for the quarterly meeting of the $120.7 billion retirement system's governing board scheduled for Thursday.

The commitments were approved by Thomas K. Lee, chief investment officer, between November and early January. The pension system's bylaws allow certain transactions to be approved without the full vote of the governing board.

The commitments are:

  • up to $150 million for Siris Partners IV, a North American middle-market buyout fund managed by Siris Capital Group that focuses on technology companies;
  • up to $150 million for Patria Private Equity Fund VI, a middle-market buyout fund managed by Patria Investimentos that will invest in controlling or relevant minority positions in Brazilian and other Latin American businesses in the health-care, food and beverages, and agribusiness sectors;
  • up to $100 million for Thoma Bravo Discover Fund II, a lower middle-market buyout fund that will focus on infrastructure and technology companies;
  • up to $100 million for Sycamore Partners III, a North American buyout fund focused on large and middle-market retail companies;
  • up to $100 million for LS Power Equity Partners IV, an North American infrastructure fund managed by LS Power Equity Advisors that focuses on power generation assets;
  • up to $100 million for ADV Opportunities Fund II, a special situations fund managed by ADV Partners that focuses opportunities in China, India and the Asia-Pacific region;
  • up to $100 million for Linden Capital Partners IV, a North American buyout fund that focuses on middle-market health-care companies;
  • up to $100 million for Carlyle Asia Partners V, a Pan-Asian buyout fund managed by Carlyle Group that invests across a variety of industries;
  • up to €75 million ($92 million) for Capvis Equity V, a middle-market buyout fund managed by Capvis Equity Partners that focuses on investing in control positions in companies in Austria, Belgium, Germany, Italy, Liechtenstein, Luxembourg, the Netherlands and Switzerland; and
  • up to €55 million for IK Small Cap Fund II, a small-market buyout fund managed by IK Investment Partners that will concentrate on companies in Northern Europe.

The commitments to Sycamore, Capvis and LS Power represent new relationships, said John Cardillo, a spokesman for the pension system, in an email.

As of Dec. 31, the actual private equity allocation was 6.2%, Mr. Cardillo said. The private equity target is 8%.