PennSERS allocates $975 million to 10 alternatives funds

Pennsylvania State Employees' Retirement System, Harrisburg, approved $975 million in commitments to alternatives funds, the $29 billion pension system said Wednesday.

The board approved a commitment of up to $330 million to Ares Management's Ares PA Opportunities Fund; and $100 million apiece to Permira Susquehanna Co-investment Fund and to ASF VIII, a secondaries fund of funds managed by Ardian that invests in the U.S. and Europe.

In addition, the board approved commitments of $75 million each to Intermediate Capital Group's ICG Europe Mid-Market Fund, Permira VII and private debt fund Permira Credit Solutions IV Master Feeder Fund.

A $70 million commitment to Ares Special Opportunities Fund was also approved.

Finally, commitments of $50 million each were approved for ASF VIII PA Co-Investment Fund; Blue Moon Senior Housing II, a real estate fund managed by Blue Moon Capital Partners; and to Blue Moon Senior Housing II Sidecar.

The PennSERS board also approved reallocating roughly $1 billion from the Mellon Capital Management Russell 3000 Index portfolio to cash.

The board also authorized to extend its contract with its private equity investment consultant StepStone Group for another 18 months.