Pennsylvania Public School Employees' Retirement System, Harrisburg, made six new commitments and investments totaling up to $845 million, spokeswoman Evelyn Williams said in an e-mail.
The $50.2 billion pension fund invested up to $200 million to Two Sigma Risk Premia Enhanced Fund, an absolute-return fund managed by Two Sigma Investments. This will be the pension fund's first investment with the hedge fund manager.
In private equity, the pension fund committed up to $200 million to LLR Equity Partners V, a buyout fund. PennPSERS has committed a total of roughly $525 million to four LLR Partners funds since 2000. It also committed up to $125 million to HGGC Fund III, a middle-market buyout fund, and up to £95 million ($120 million) to HgCapital 8, a European buyout fund. PennPSERS previously committed to HGGC Funds I and II and HgCapital 7.
Also, PennPSERS committed up to $100 million to GCM Grosvenor Customized Infrastructure Strategies II, a fund of funds. This is the first time PennPSERS has made a commitment to a GCM Customized Fund Investment Group fund.
Finally, the pension fund hired Penn Mutual Asset Management to manage an initial amount of $100 million in PennPSERS LIBOR Plus portfolio, a separate account that invests primarily in collateralized loan obligations but may also invest in other investment-grade rated structured securities.