The New York State Teachers' Retirement System, Albany, made six private equity commitments for a total of up to $856 million and four private debt commitments totaling up to $475 million.
Information about the commitments was contained in a document presented to the pension system's governing board at its quarterly meeting Wednesday. Each commitment was approved by Thomas Lee, executive director and chief investment officer of the $109.5 billion pension system, without a full board vote. The retirement system's rules allow the CIO to take action without a vote under certain circumstances.
The private equity commitments are:
- Silver Lake Partners VI for up to $300 million. The fund will invest in "large-cap companies operating within technology, technology-enabled and related growth industries," the document said. Sliver Lake is an existing relationship.
- DCP Capital Partners II for up to $200 million. The fund will make "small- to midcap buyout and substantial minority investments in consumer, health care, agriculture, financial and business services, and industrial companies" in China, the pension system document said. DCP is an existing relationship.
- Livingbridge 7, of up to £100 million ($126 million). The fund is a "lower middle-market buyout fund targeting high-growth investments" in sectors such as business services, consumer products and health. Livingbridge is a new relationship.
- Vitruvian Investment Partnership IV for up to €100 million ($115 million). Managed by Vitruvian Partners, this fund will invest in high-growth companies in sectors that include financial services, information technology, health care and media. Vitruvian is a new relationship.
- JFL Equity Investors V, for up to $100 million. Managed by J.F. Lehman & Co., the "small-middle market buyout fund" seeks investments in aerospace, defense, maritime, government services and environmental services" sectors, the document said. J.F. Lehman is a new relationship.
- Amulet Capital Overage Fund I for up to $15 million. Managed by Amulet Capital Partners, the fund "will focus on completing follow-on investments in portfolio companies comprising the Amulet Capital Fund I portfolio" for which the pension system made a commitment in 2016, the document said. Amulet Capital Fund I focused on small/middle-market buyout investments in North American health-care companies.
The private debt commitments are:
- Blue Torch Credit Opportunities Fund II for up to $200 million. Managed by Blue Torch Capital, the fund will "focus predominantly on lending to companies that are undergoing operational, financial, legal or regulatory transformations/hurdles," the document said. Blue Torch is a new relationship.
- A pair of funds managed by MGG Investment Group, each for up to $100 million. MGG SF Evergreen Fund is a direct lending fund that invests in “senior secured securities of non-sponsored, lower middle-market companies,” the document said. The commitment is a follow-on to one made in August 2018. MGG Special Opportunities Fund is an overflow vehicle,” meaning it generally invests in larger deals alongside” other MGG funds for which the pension system has made commitments, pension system spokesman John Cardillo wrote in an email.
- Peninsula Fund VII for up to $75 million. The fund, managed by Peninsula Capital Partners, focuses on mezzanine debt securities of profitable North American-lower middle-market companies, the document said. Peninsula Capital is an existing relationship.