Virginia Retirement System, Richmond, committed or invested a total of $2.2 billion in private equity, emerging market public equity, real assets and fixed income. It also terminated two managers in public equity and credit strategies.
The actions were announced in a report following a joint meeting of the investment advisory and investment policy committees Tuesday.
The pension fund committed $1.79 billion to private equity, including $750 million to Grosvenor Capital Management for a separate account for smaller and emerging funds that will commit $150 million per year for five years.
Other private equity commitments were $325 million to TA XIII, a global growth fund managed by TA Associates; $250 million to Apax X, a global mega buyout fund managed by Apax Partners; $200 million to Trident VIII a global large-cap buyout fund focusing on the financial services industry managed by Stone Point Capital; $150 million to Advent Global Private Equity IX and $20 million to a technology companion fund for the global mega buyout fund managed by Advent International; $90 million to HIG Middle Market LBO Fund III managed by H.I.G. Capital.
In public equity, Virginia hired Baillie Gifford to manage $275 million in an emerging markets all-cap strategy. Funding came from cash.
In real assets, the pension fund committed $50 million to Scout Energy Partners V, a U.S.-focused closed-end energy fund.
In fixed income, Virginia opened a $100 million account for an internally managed systematic high-yield strategy.
Terminated were Grantham, Mayo, Van Otterloo & Co. from a $275 million emerging markets long-only domestic opportunities strategy and Oaktree Capital Management from a $467 million separate account invested in domestic convertible bonds.
The $80.4 billion pension fund's asset allocation is 40.2% public equity, 15.9% fixed income, 14.3% credit strategies, 13.7% real assets, 11.3% private equity, 3.9% in a strategic opportunities portfolio and 0.7% cash.
