Pennsylvania State Employees' Retirement System, Harrisburg, approved a total of $150 million in commitments to two new private equity funds.
At its Tuesday meeting, the $29.6 billion board committed $75 million each to Clearlake Capital Partners VI, managed by Clearlake Capital Group, and to growth equity fund Insight Partners XI.
PennSERS has existing relationships with both managers.
The board also selected executive search firm EFL Associates to assist with the pension plan's search for a chief investment officer. PennSERS issued an RFP for an executive recruiting firm in October. The board hopes to select a CIO next summer.
In July, Bryan Lewis announced his plans to leave his position as CIO effective Aug. 2. The board appointed deputy CIO James G. Nolan as acting CIO effective Aug. 3 while the plan seeks a permanent replacement.
In addition, the PennSERS board approved a stress testing and risk assessment report developed by the pension fund's actuarial firm, Korn Ferry, in coordination with its investment consultant, Callan. The report reviewed a range of investment-, contribution- and demographic-related risks that could affect the fund's long-term health and stability.
"The need for greater transparency and stress testing were among the key findings of the pension review commission's final report last December," Executive Director Terrill J. Sanchez said in a news release. "Since then, our board members have worked closely with staff to review, prioritize and act on those recommendations. We believe the actions taken today represent significant steps in the ongoing effort toward greater public transparency and accountability."
