Massachusetts Pension Reserves Investment Management Board on Thursday approved combined commitments of $650 million to four private equity firms.
The $94.7 billion Boston-based pension fund committed up to €250 million ($275 million) to buyout fund CVC Capital Partners Fund IX. PRIM invested in CVC's prior eight funds in addition to making three co-investments with the firm, said Helen Huang, a senior investment officer on PRIM's private equity team, in a presentation to the board.
The board committed up to $150 million to PSG VI, a growth equity fund managed by PSG Equity that focuses on driving the growth — both organic and inorganic — of lower-middle-market software and technology companies. Ms. Huang said PRIM has invested with PSG since that firm's third fund in 2017, as well as co-investing in two companies.
PRIM committed up to $150 million to American Industrial Partners Capital Fund VIII, a deep-value buyout fund targeting operating and engineering companies "underperforming their profit potential," Ms. Huang said. PRIM's first commitment to American Industrial Partners was to the firm's Fund VII in 2019.
The state fund's final private equity allocation was a commitment of up to $75 million to another deep-value buyout fund, KPS Special Situations Mid-Cap Fund II. Ms. Huang said the firm focuses on industrial and manufacturing businesses. PRIM also has made commitments to previous funds managed by KPS Capital Partners.
The latest allocations follow a total of $1.1 billion in commitments approved at PRIM's prior board meeting. The pension fund's 2023 investment plan calls for making private equity commitments of between $2.2 billion and $3 billion.