Pennsylvania State Employees' Retirement System, Harrisburg, approved $185 million in new and follow-on commitments at its board meeting Wednesday, confirmed Pamela Hile, a spokeswoman for the $25.7 billion pension fund.
PennSERS' board approved a commitment of $50 million to Capvis Equity IV, a new buyout fund in SERS' portfolio focusing on middle-market companies based in the German-speaking region of Europe. The fund is managed by Capvis Equity Partners.
PennSERS also agreed to commit $100 million to The Carlyle Group to manage a custom investment vehicle for primary and direct co-investments across Carlyle's global platform. This initial commitment will be directed to Carlyle's buyout funds focused in the U.S., Europe and Asia.
In addition, the board made a $25 million follow-on commitment to the Lubert-Adler Real Estate Fund VII and a $10 million follow-on commitment to Draper Triangle Ventures III, a venture capital fund that focuses on early stage investments in emerging technology companies that are located in the Midwest, with a primary focus on western Pennsylvania, Ohio and Michigan.
Also at the meeting, the pension fund reported a net-of-fees return of 4.2% for the third quarter of 2013. Returns for the third quarter were global public equity at 8.7%; real assets, 2.9%; alternatives, 2.1%; hedge funds, 1.9%; fixed income, 0.8%; and liquidity reserve, 0.2%.
The board also charged state Sen. Charles T. McIlhinney Jr. with the responsibility of leading the search for a new chief investment officer to replace Anthony S. Clark, whose retirement is effective Dec. 31.