Massachusetts Pension Reserves Investment Management Board, Boston, approved roughly $4 billion in commitments to external managers at the $104.2 billion pension fund’s May 30 meeting.
Following recommendations approved by PRIM’s investment committee earlier in May, the full board approved allocations of $400 million apiece to three developed international growth equity managers: Copenhagen-based C WorldWide Asset Management, Montreal-based PineStone Asset Management and Edinburgh-based Walter Scott & Partners.
Likewise, the board followed investment committee recommendations to hire PRIM’s first multiasset credit managers, with allocations of up to $300 million for Anchorage Capital Advisors, $600 million to HPS Investment Partners, $400 million to New York-based Shenkman Capital as well as two mandates for KKR: $500 million for that firm’s multiasset credit strategy and another $200 million for its Global Credit Opportunities strategy. The four managers are all based in New York.
In other decisions, the PRIM board voted to allocate $200 million to Morgan Properties Separately Managed Account managed by Morgan Properties as part of the fund’s “other credit opportunities” bucket. The strategy looks to acquire “Freddie Mac B-piece securities” at discount of 55% to 70% loan to value.
The board also approved a commitment of up to $175 million in Milan-based Eidos Partners €350 million ($380 million) Eidos Italian Distressed Loan Fund III, which looks to purchase small pools of NPLs from Italian banks or secondary sellers at steep discounts to their underlying collateral and then work to recover the loan either through “mutual settlement with the borrower or through a court-based foreclosure process."
The board likewise approved a commitment of up to $100 million to Kansas City-based private equity firm Five Elms Capital’s $850 million Five Elms Fund VI, which invests in growth-stage software companies based primarily in North America.
The board approved follow-on commitments of up to $200 million to Thoma Bravo Fund XVI, $125 million to Thoma Bravo Discover Fund V and up to $175 million to Stone Point Capital’s $9 billion Trident X.
