Rhode Island commits $90 million to private equity, infrastructure

Rhode Island State Investment Commission committed a total of up to $90 million to private equity and infrastructure funds, according to documents from its March 27 meeting. The commission includes the $8.1 billion Rhode Island Employees' Retirement System, Providence.

In private equity, Rhode Island committed up to $60 million to Advent Global Private Equity IX, a buyout fund managed by Advent International that targets control-oriented buyouts and recapitalizations primarily in North America and Europe. GPE IX is expected to invest in 30 to 35 portfolio companies over a six-year period, according to a presentation at the meeting by Cliffwater, the commission's alternatives investment consultant.

Rhode Island has already made commitments of $20 million each to Advent Global Private Equity VII and VIII, according to Evan England, spokesman for state Treasurer Seth Magaziner, who oversees the commission. In 2016, the commission raised its private equity target allocation to 11.5% from 5%.

In infrastructure, the commission made a new commitment of $20 million to Star America Infrastructure Partners Fund II, which targets medium-size North America infrastructure projects sponsored by government entities and focuses on greenfield infrastructure projects at or near the beginning of construction. Star America will seek to be the controlling equity partner with development consortiums bidding on new infrastructure projects, according to the Cliffwater presentation.

The commission also decided to make a $10 million follow-on commitment to Stonepeak Master Co-Investment Partners, for a total commitment of $20 million. The fund is managed by Stonepeak Infrastructure Partners, which focuses on North American middle-market infrastructure investments. The fund was originally structured to co-invest along with Stonepeak Infrastructure Fund II for larger investments that require more capital.

The pension fund currently has 8.7% in private equity and 3.6% in infrastructure.