New York State Teachers' Retirement System, Albany, made six private equity commitments and two private debt commitments totaling about $700 million, according to a document prepared for the board's quarterly meeting on Thursday.
Each commitment was approved by Thomas K. Lee, executive director and chief investment officer. The $118.9 billion pension system's bylaws allow for commitments to be made under certain circumstance without a full board vote.
The pension fund made two £65 million ($92.5 million) commitments to Inflexion Private Equity Partners — Inflexion Buyout Fund V, which seeks control-oriented investments in lower-middle-market companies in the U.K., and Inflexion Partnership Capital II, which emphasizes non-control, minority investments in lower-middle-market companies in the U.K.
Also in private equity, the pension fund committed $100 million to A&M Capital Partners II, which focuses on control-oriented investments in middle-market businesses and is managed by Alvarez & Marsal Capital, and $100 million total to SK Capital Partners. The SK Capital commitments are $80 million to SK Capital Partners V, which concentrates on control-oriented investments in specialty material, chemical and pharmacutical industries, and $20 million to SK Capital Partners Overage Fund V, aimed at the same types of companies "with the ability to provide incremental capital for larger deal opportunities."
The pension fund also committed A$120 million ($93.1 million) to BGH Capital Fund I, which concentrates on control-oriented investments in middle-market businesses based in Australia or New Zealand.
The pension system also made two private debt commitments with Intermediate Capital Group.
One commitment was for €100 million ($123.3 million) for ICG Europe Fund VII, which concentrates on privately negotiated subordinated debt and equity investments in middle-market companies located throughout Europe. The other commitment of $100 million was to ICG North American Private Debt Fund II, which provides capital through junior debt securities in mature middle-market North American-based companies.
The pension fund has invested with Inflexion and ICG before. The other managers are new relationships.
Private equity accounts for 6.6% of total plan assets, said John Cardillo, a pension system spokesman, in an email. The target allocation is 8%. Private debt represents 0.4% of total plan assets, he added, with a 1% target.