New York State Teachers' Retirement System, Albany, made five private equity commitments totaling up to $900 million, according to a documents posted on the $126.6 billion pension system's website.
The commitments are:
- Up to $300 million to the Thoma Bravo Fund XIV, a buyout fund that will invest in large-cap companies in the application software, infrastructure software, security software and technology-enabled services businesses; and up to $200 million to Thoma Bravo Discover Fund III, a buyout fund that will invest in middle-market companies in the application software, infrastructure software, security software and technology-enabled services sectors.
- Up to $200 million to Sterling Group Partners V, a small/middle-market buyout fund.
- Up to $100 million to One Rock Capital Partners III, a middle-market buyout fund.
- Up to $100 million to Tenex Capital Partners III, a middle-market buyout fund managed by Tenex Capital Management, that focuses on investments in the U.S. and Canada.
Thoma Bravo, Sterling Group, One Rock Capital and Tenex are existing relationships for the pension fund.
The commitments were approved between Jan. 1 and April 15 by Thomas Lee, the pension fund's executive director and chief investment officer. The retirement system's rules allow the CIO or investment committee to take action without a full board vote under certain circumstances.
The pension fund reported $9.3 billion in private equity assets as of June 30, the end of the previous fiscal year. That represented 7.8% of the retirement system's assets. The target is 8%, and the allowable range is 3% to 13%.