Massachusetts Pension Reserves Investment Management Board, Boston, disclosed a total of $45 million in new commitments to emerging and diverse managers in a report included with materials for its investment committee meeting Tuesday.
The commitments are part of the $91.9 billion pension fund's FUTURE Initiative announced in 2021. In December of that year, the board approved targeting $1 billion in commitments in 2022 and 2023 for the initiative, which is intended to bring diversity within MassPRIM's vendor base to at least 20% to comply with the state's Investment Equity Law signed in January 2021.
The board committed $15 million each to venture capital fund NewView Capital Fund III, buyout fund Red Arts Capital Opportunity Fund I and growth equity fund 1315 Capital III, according to the meeting materials.
Overall, MassPRIM allocated more than $2.8 billion to diverse managers in 2022 and a total of more than $340 million specifically for the FUTURE Initiative, according to the meeting materials.
Separately, MassPRIM's investment staff plans to make between $2.2 billion and $3 billion in private equity fund and co-investment commitments in 2023.
The investment staff disclosed the commitment goal in its 2023 PRIM Staff Annual Plans presentation included with the meeting materials. The pension fund does not issue RFPs for private equity managers.
As of Dec. 31, the pension fund's actual allocation to private equity was 17.7%, and its target allocation range is 12% to 18%.