Pennsylvania State Employees' Retirement System, Harrisburg, committed $75 million to two buyout funds managed by Thoma Bravo, the $30 billion pension plan said.
At its Wednesday meeting, the PennSERS board approved a $50 million commitment to Thoma Bravo Fund XIV and a $25 million commitment to Thoma Bravo Discover Fund III.
PennSERS previously committed to Thoma Bravo Fund XIII.
The board also agreed to rebalance the pension plan's public market assets over time to align with the board approved target ranges. Rebalancing will involve redeeming roughly $380 million from equities and Treasury inflation-protected securities investments, while contributing about $780 million to the core fixed-income and U.S. Treasuries portfolios.
The pension plan has a target allocation of 26% to fixed income, 25% U.S. equities and 4% TIPS.
PennSERS posted a return of 8.04% net of fees for the quarter ended June 30. By asset class, returns for the quarter were U.S. equities, 22.75%; emerging markets equities, 20.74%; international developed markets equities, 16.38%; Treasury Inflation-Protected Securities, 4.35%; fixed income, 3.21%; and cash, 0.17%. Meanwhile, real estate returned -0.06%; private credit, -4.72%; and private equity, -7.8%.
