Iowa Public Employees’ Retirement System, Des Moines, authorized Pathway Capital Management, its full discretionary private equity manager, to search for private equity partnerships and commit $100 million total.
Pathway recommended the new commitment to Iowa PERS, which oversees $27.7 billion in assets.
“Overall (the) trend and outlook for (private equity) industrywide exits, performance and investment activity is positive,” Pathway described in a presentation to trustees.
The allocation brings to $800 million the total Iowa PERS committed to Pathway this year, including $700 million committed at the beginning of the year.
Pathway Capital has full discretion to manage Iowa PERS’ entire $2.9 billion private equity portfolio, including searching for and selecting private equity partnerships.
Managers may contact Pathway for consideration at [email protected].
Iowa PERS has an actual private equity allocation of 10.8% and a target of 13%, with the upper part of its target range at up to 16% of total assets.
“Exit markets for private equity-backed companies remain favorable: 2013 was a record-setting year for private equity-backed (initial public offerings) and follow-on offerings in the U.S.,” the Pathway presentation said.