The New York State Teachers' Retirement System, Albany, made two private equity commitments totaling up to $175 million.
The $121.8 billion pension fund committed up to $100 million to Tailwater Energy Fund IV, managed by Tailwater Capital, which focuses on buyouts of North American lower-middle-market companies in the oil and gas sectors, said John Cardillo, a pension system spokesman, in an email. The pension system previously committed $75 million to a prior Tailwater fund.
A commitment of up to $75 million was also made to CapStreet V, a fund managed by The CapStreet Group specializing in buyouts of middle-market companies in the industrial and business services sectors, Mr. Cardillo said. The pension system previously committed $25 million to another CapStreet fund.
Both commitments were announced Wednesday at the quarterly meeting of the pension system's governing board. Both commitments had been approved by Thomas Lee, executive director and chief investment officer, without a full board vote. The retirement system's rules allow the CIO to take action without a vote under certain circumstances.
The governing board also approved a series of investment manager contract renewals, each for one year:
- T. Rowe Price, which manages $836 million as a domestic equity enhanced index manager, effective Oct. 30.
- Baillie Gifford Overseas, which manages $808 million as an active international equity manager, effective Sept. 15.
- William Blair & Co., which manages $753 million, as an active international equity manager, effective Sept. 22.
- Prima Capital Advisors, which manages $534 million actively within a separate account structure in commercial mortgage-backed securities, investment-grade real estate investment trust bonds, first mortgage loans and mezzanine loans, effective Nov. 1.
- Four firms to manage global real estate public securities benchmarked to the FTSE EPRA/NAREIT Developed Unhedged index — Dimensional Fund Advisors (which manages $244 million); AEW Capital Management ($240 million); Heitman Real Estate Securities ($239 million); and Brookfield Asset Management ($233 million). The effectives dates were not identified.
