New York State Teachers' Retirement System, Albany, committed up to $100 million to a real estate investment partnership with Grosvenor Capital Management, said John Cardillo, a spokesman for the $104.3 billion pension fund.
Pending completion of due diligence, the partnership will be with Grosvenor Capital Management's Customized Fund Investment Group and will be known as CFIG-NYSTRS Real Estate Investment Partners, according to information posted on the pension fund's website.
The commitment was approved by the pension fund's retirement board at its quarterly meeting Thursday. Mr. Cardillo said in an e-mail that this partnership is “a separate account that can invest in funds as well as make individual transactions.”
The partnership, which will emphasize “opportunistic and value-added emerging manager funds and co-investments,” will focus on investing with emerging managers and minority- and women-owned business enterprises, he added.
The board also hired TorreyCove Capital Partners as private equity consultant for one year effective May 1, according to the pension fund's website. The pension fund issued an RFP last year. StepStone Group has been the consultant since February 2008 and rebid.
In addition, Mr. Cardillo said the pension fund made several transactions during early 2014 that did not require a board vote. The transactions, details of which were presented to the board Thursday, are:
- A commitment of up to $150 million to HarbourVest/NYSTRS Co-investment Fund II. Mr. Cardillo described the fund as a “separate account designed to make private equity co-investments alongside U.S. growth equity sponsors.” The pension fund has invested in nine other HarbourVest Partners funds, including HarbourVest/NYSTRS Co-investment Fund I. The total commitment to HarbourVest funds has been $1.1 billion, Mr. Cardillo wrote.
- A commitment, pending completion of due diligence, of up to $75 million to ABRY Advanced Securities Fund III, managed by ABRY Partners. “This fund invests primarily in senior secured bank loans of companies that operate in the information, communications, business services and media industries,” Mr. Cardillo wrote. The pension fund has invested in eight other ABRY funds for a total of about $475 million, he added.
- A commitment of $50 million to Artemis Real Estate Partners Fund II. This is “opportunistic U.S. equity and debt investments with a focus on the multifamily, industrial, office, health care and retail sectors,” Mr. Cardillo wrote. The pension fund made a commitment of $32.2 million to another Artemis fund in 2011.
- A commitment of up to $25 million CapStreet IV, managed by private equity firm CapStreet Group. This is the first commitment to CapStreet. Mr. Cardillo described CapStreet IV as “focused on control investments in companies serving the industrial distribution, industrial manufacturing and diversified business services sectors.”
