Pennsylvania Public School Employees' Retirement System, Harrisburg, committed a total of up to $350 million to two alternatives funds, according to documents from the $50.4 billion pension fund.
At its May 1 board meeting, the pension fund board committed $250 million to TSSP Adjacent Opportunities Partners, a high-yield special situations fund managed by TPG Capital that targets drug royalty streams, European bank loans and real estate loans. PennPSERS has previously invested in seven other TPG funds.
The pension fund also committed up to $100 million to Energy & Minerals Group Fund III, a private equity fund focusing on equity investments in non-substitutable industrial commodities such as oil, gas, iron ore and coal.
The pension fund also agreed to commit an additional $40 million to LBC Credit Partners III, a credit fund, raising the total commitment to $240 million. The initial $200 million investment was PennPSERS' second commitment to LBC Credit Partners.