Connecticut Retirement Plans & Trust Funds, Hartford, committed $200 million to Vista Equity Partners Fund VIII and laid out 2023 pacing plans to commit $4.55 billion to private markets.
The commitment was unveiled on Wednesday by Connecticut Treasurer Shawn Wooden, attending his final meeting of the state's investment advisory council, according to a news release.
A spokeswoman for the Office of the State Treasurer confirmed by email that Vista Equity Partners Fund VIII is a buyout fund. The $41.7 billion pension fund has made prior commitments to the manager, including Vista Equity Partners Fund VII.
In addition, at the meeting of the investment advisory council, Mark Evans and Denise Stake, principal investment officers at CRPTF, and Olivia Wall, senior investment officer, provided an overview of recommended 2023 pacing plans for the fund's private equity, private credit, real estate and infrastructure/natural resource asset classes.
Mr. Evans also presented two investment opportunities to expand Connecticut's existing private equity and private credit co-investment partnership through HarbourVest CT Co-Investment Fund and HarbourVest CT Private Debt Fund.
According to a meeting info packet, in a letter dated Dec. 8, Mr. Wooden wrote to the council proposing additional commitments of $300 million to both funds.
The pension fund committed $450 million to each in January, targeting a pacing of $150 million a year over a three-year period.
If approved, it would increase each vehicle's targeted annual investment pacing to $300 million for the last two years of the initial investment period."
Ms. Stake and Ms. Wall also presented two investment recommendations in the infrastructure and natural resource portfolio, including an expansion of Morgan Stanley-CT Real Assets Co-Investment Fund and an investment in BlackRock Global Infrastructure Fund IV.
According to the meeting packet, CRPFT's committed $375 million in February to Morgan Stanley Investment Management for valued-added and opportunistic real estate and infrastructure and natural resources co-investments. The investment officers have recommended an expansion of up to an additional $200 million for that would now include core and non-core investments as well.
With respect to BlackRock, the investment officers recommended a $200 million commitment to BlackRock Global Infrastructure Fund IV.
Separately, according to a presentation of Wednesday's meeting, for 2023, CRPTF has targeted commitments of $850 million to infrastructure/natural resources, $500 million to real estate, $1.3 billion to private credit and $1.9 billion to private equity.
According to the presentation, the projected asset allocation for infrastructure/natural resources is 3.2% in 2023, up from 1.9% in 2022. The longer-term strategic asset allocation target for infrastructure/natural resources is 7%.
The projected asset allocation for real estate is 9.6% in 2023, up from 8.6% in 2022. The longer-term strategic asset allocation target for real estate is 10%.
The projected asset allocation for private credit is 4.6% in 2023, up from 3.3% in 2022. The longer-term strategic asset allocation target for private credit is 10%.
The projected asset allocation for private equity is 12.2% in 2023, up from 11.2% in 2022.
