Searches and Hires

MassPRIM earmarks $1.4 billion for 9 funds

Massachusetts Pension Reserves Investment Management Board, Boston, committed or invested $1.36 billion to eight funds and in one separate account, minutes from the $69.3 billion pension system's Tuesday meeting show.

The PRIM board approved a commitment of up to $500 million to Sightway Capital fund of one, which is a wholly owned unit of Two Sigma Investments. The fund makes direct private investments in emerging companies.

MassPRIM also agreed to commit $250 million to Blackstone Capital Partners VIII, a private equity fund; $125 million to Investcorp Special Opportunities Italian Distressed Loan Fund II, a European distressed debt fund managed by Investcorp Investment Advisers; and $100 million to BlackRock (BLK)'s Aviation Holdings fund of one.

The board approved an initial investment of $150 million to a structured credit strategy managed by Anchorage Capital Group.

Also at its Tuesday meeting, the PRIM board approved the following commitments: $100 million to Providence Strategic Growth IV, a private equity fund managed by Providence Strategic Growth Capital Partners; and $75 million to American Industrial Partners Capital Fund VII, a buyout fund.

MassPRIM's board also agreed to commit a total of $30 million to two venture capital funds managed by Spark Capital: $20 million to Spark Capital Growth III and $10 million to Spark Capital VI.

Finally, the board also approved an additional follow-on commitment of $25 million to Lovell Minnick Equity Partners V, a buyout fund managed by Lovell Minnick Partners. The amount is in addition to a previously agreed upon commitment of $150 million to the fund, bringing the total commitment to $175 million.

In addition, the board approved changes to MassPRIM's co-investment program and guidelines:

  • Increase the annual investment policy limit for co-investments to 20% of private equity annual commitments from 10%.
  • Increase the equity size limit for each co-investment to $75 million from $30 million.
  • Remove the leverage test and joint control test.