New York State Teachers’ Retirement System, Albany, committed up to $1.15 billion total to private equity and real estate.
In real estate, the $109.7 billion pension fund committed up to $350 million to Brookfield Asset Management and up to $300 million to Cornerstone Real Estate Advisers to manage in real estate debt separate accounts. Brookfield will focus on “first mortgage loans and subordinated debt,” and Cornerstone, first mortgage bridge loans, spokesman John Cardillo said in an e-mail. The pension fund had made four other commitments each with Brookfield and Cornerstone.
Among the private equity transactions, the pension fund committed:
- Up to a combined $200 million to TSG 7-A and TSG 7-B, both of which focus on “consumer middle-market opportunities,” primarily in North America, Mr. Cardillo said. The pension system will commit up to $160 million to the former and up to $40 million to the latter. It has made three other commitments to funds managed by TSG Consumer Partners.
- $100 million to Pacific Equity Partners Fund V, which targets middle-market buyouts in New Zealand and Australia, wrote Mr. Cardillo, adding this is a first-time commitment to the manager.
- £50 million ($77 million), to Phoenix Equity Partners 2015 Guernsey, which focuses on lower middle-market buyouts in the U.K., Mr. Cardillo wrote. The pension fund has previously committed to the manager.
- Up to $75 million to Waud Capital Partners IV, which specializes in “lower middle-market buyouts in the health care, business and technology services sectors in North America,” Mr. Cardillo wrote. The pension fund previously made a commitment to a previous Waud Capital Partners fund.
- $50 million to Clearlake Opportunities Partners, whose strategy emphasizes “non-control-oriented investments that are distressed, underperfoming or undergoing complex organizational change,” Mr. Cardillo said. The pension fund has made previous commitments to two other Clearlake Capital Group funds.
The real estate transactions were approved by the plan’s governing board Thursday. The private equity transactions did not require a board vote.