Hartford HealthCare, Hartford, Conn., made venture capital commitments of $13 million to Avalon Ventures XI and $12 million to GGV Capital’s GGV Select fund, said David J. Holmgren, chief investment officer.
Avalon XI is an early stage fund, and GGV Select invests in Chinese-U.S. technology and consumer firms. Both will be part of Hartford HealthCare’s private equity portfolio, now at 3% of total assets with a target of 5%, Mr. Holmgren said.
Private equity is part of its overall 55% in growth strategies, which include private and public equities. The remaining allocation has 35% in risk reduction, which includes hedge funds and fixed income, and 10% in an economically hedged asset allocation, split evenly between real estate and natural resources.
The target annualized return assumption for the growth assets is 8.5%, but 11% specifically for private equity, Mr. Holmgren said.
Private equity consultant Mercer assisted.
Hartford HealthCare has $3 billion in pension, endowment and insurance assets.