Pennsylvania State Employees' Retirement System, Harrisburg, committed a total of up to $127 million to three alternatives funds, the $32 billion pension plan announced.
At its Wednesday meeting, the PennSERS board committed up to €64 million ($77 million) to PSG Europe, a private equity growth fund managed by Providence Equity Partners targeting software and tech-enabled service companies in Europe. The pension fund has invested in other Providence funds.
The board also approved a commitment of up to $30 million to Rubicon First Ascent, a real estate fund managed by Rubicon Point Partners that targets office opportunities in the Pacific Northwest; and up to $20 million to Rubicon First Ascent Sidecar.
The board also redefined the pension plan's fixed-income allocations by moving toward a liability-driven benchmark and received a final report of the plan's responses to the recommendations made by the state's Public Pension Management and Asset Investment Review Commission.
The review commission issued a report providing more than 100 recommendations in December 2018 after examining the state's two employee retirement systems (PennSERS and the $55.8 billion Pennsylvania Public School Employees' Retirement System, Harrisburg). The recommendations included performing annual stress tests, mandating full funding of each retirement fund as an annual budgetary priority and increasing levels of transparency on fund investments and performance.