New York State Teachers' Retirement System, Albany, made seven private equity and debt commitments of up to $633 million in total, according to a report prepared by the pension system for its governing board's quarterly meeting Wednesday.
Each of the commitments was approved by Thomas K. Lee, CIO and executive director of the $119.3 billion system, according to board guidelines that allow for transactions to be approved without a full board vote under certain circumstances.
According to the report, four commitments are new relationships:
Primavera Capital Fund III, managed by Primavera Capital Group, received a commitment of up to $100 million. The fund focuses on investments covering technology, financial services, consumer goods, education and health-care services.
MGG SF Evergreen Fund, managed by MGG Investment Group, also will receive up to $100 million, for the fund that invests in "senior secured securities of middle-market non-sponsored companies," the pension fund report said.
Tailwater Energy Fund III, managed by Tailwater Capital, a commitment of up to $75 million, emphasizing lower-middle-market oil and gas infrastructure projects.
ECI 11, up to €50 million ($58 million), managed by ECI Partners, and focusing on consumer and business service companies in the U.K.'s lower-middle market.
The report identified three other new commitments to firms with which the pension fund has had previous transactions:
HIPEP Select Asia Fund III, up to $150 million, managed by HarbourVest Partners and seeking investments in middle-market opportunities in developed and developing countries in Asia. The pension fund previously made two commitments to other HIPEP funds totaling $250 million.
Two funds managed by Cressey & Co. — up to $100 million for Cressey & Co. Fund VI and up to $50 million for Cressey & Co. Overage Fund VI. The former focuses on investments in U.S. health-care providers; the latter represents additional capital for larger U.S.-based health-care companies. The pension fund had made a $65 million commitment to another Cressey fund previously.
Separately, the pension system's return on investment, net of fees, was 7.4% for the nine months ended March 31, the first three quarters of its recently completed fiscal year, John Cardillo, a spokesman, wrote in an email. Results for the quarter ended June 30 are not yet available.
