CalSTRS committed $250 million to HarbourVest CalSTRS Lower Middle Market Fund VI, a private equity feeder fund-of-funds strategy to invest in U.S. inner cities or other underserviced markets, according to the $225.3 billion pension fund's recent diversity in the management of investments report.
The commitment made in December is managed by alternative investment firm HarbourVest Partners. The California State Teachers' Retirement System, West Sacramento, has invested with HarbourVest Partners in this strategy in the past, including a $585 million deployed in 55 funds. Some 80% of those funds are led by at least one diverse partner and 33% are led by at least one woman.
CalSTRS had not released information about this commitment until it released its diversity in the management of investments report in January, said Michelle Mussuto, CalSTRS spokeswoman in an email.
Separately, CalSTRS committed $200 million to Jair Lynch Real Estate Partners, which specializes in Washington-based properties with a mission of redeveloping urban markets, the diversity report states. CalSTRS was first introduced to Jair Lynch through the MacFarlane Emerging Manager Fund in 2006. Under MacFarlane's oversight, Jair Lynch's success in developing an approximately $1 billion portfolio led CalSTRS to invest directly with the firm, which it considers an "emerged" manager.