PennSERS earmarks $200 million to 4 private equity funds

Pennsylvania State Employees’ Retirement System, Harrisburg, committed $200 million total to four alternative investment funds, said Pamela Hile, spokeswoman for the $27.6 billion pension fund.

The board at its investment meeting Wednesday committed up to $50 million each to the following investment funds: RRJ Capital Master Fund III, a private equity fund that will make opportunistic investments in China and Southeast Asia; Audax Private Equity Fund V, a buyout fund focused on middle and lower markets managed by Audax Group; Blackstone Capital Partners VII, a global buyout fund managed by Blackstone Group; and Ridgemont Equity Partners II, a middle-market buyout fund.

Separately, the pension fund returned 0.9% net of fees in the second quarter. PennSERS reported a 1.9% gain in the first quarter. For the 12 months ended June 30, the fund returned 2.9% net of fees.

Real assets returned 2.3% for the quarter. Alternatives, meanwhile, returned 1.9%; global equities, 0.9%; diversifying assets, including hedge funds, 0.8%; cash reserves, 0.3%; and fixed income, -1.2%.

Overall, investments generated $252 million net of fees during the second quarter.