The Pension Reserves Investment Management Board, Boston, invested in three buy-out funds and will make additional commitments to real estate separate accounts in February and March. The amount has not been determined, but the money will go to the fund's existing separate account managers. The $8 billion fund's target for real estate is 6%. It is near 4% now.
``We think we can get to the target in two years,'' said Gregory White, executive director.PRIM will invest $110 million in the three buy-out funds: $50 million in KKR's eighth fund; $40 million in Boston Ventures V and $20 million in Vestar Capital Partners. This is PRIM's first investment with Vestar. It previously has invested with KKR and Boston Ventures.
Pathway Capital Management assisted.
Assets will come from a reduction in U.S. equities over the next three to four years. Equities now represent 47% of assets; the long-term target is 42%. PRIM's long-term target for alternative investments for the next five years is 8%; currently, alternative investments total about 4%.
