LPs

New Hampshire to commit $100 mln per year for new PE relationships

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New Hampshire, private equity, NHRS
High cloud cover reflects the dying light of the sunset at a lake near Bristol, New Hampshire October 15, 2008. Picture taken October 15, 2008. REUTERS/Ray Stubblebine - RTX9O3G
  • Plans to commit $100 mln annually to new relationships for several years
  • Recent commitments include Kayne Anderson and Warburg Pincus
  • New Hampshire will also consider re-ups

The New Hampshire Retirement System plans to commit around $100 million to new relationships with private equity and private debt managers each year “for the next several years,” according to an investment plan made available by spokesman Marty Karlon.

The $7.5 billion retirement system already set about expanding its roster of general partners in the latter half of 2015 with commitments to BlueBay Asset Management, Kayne Anderson and Warburg Pincus, Karlon said in an email.

“Some of the 2015 commitments haven’t started drawing capital yet, so they will be considered 2016 vintage,” he said. “Also, existing managers who have performed well and are returning to market will be considered for re-commitment.”  

New Hampshire worked to assemble a diverse array of managers for its private equity and private debt portfolio after relaunching its alternatives program in 2009. As of September 30, the pension’s post-crisis commitments include allocations to secondary funds managed by Coller Capital, a Crescent Capital Group direct lending fund, and an array of international buyout funds overseen by The Carlyle Group.

The retirement system found limited success in private equity prior to 2009. Its legacy portfolio netted just 1.4 percent through June 30, according to its annual report, which was a key reason its overall alternatives portfolio returned just 4.7 percent in the most recent fiscal year.

“The low-single-digit return on alternative assets, primarily private debt and private equity, continue to be depressed by legacy investments, primarily in venture capital,” the annual report said.

New Hampshire had a 9.8 percent target allocation to alternatives as of June 30, according to its annual report. The pension was 5.2 percentage points short of its target.

Action Item: To read New Hampshire’s annual report, visit http://bit.ly/1IQVIVy

Photo: High cloud cover reflects the dying light of the sunset at a lake near Bristol, New Hampshire October 15, 2008. REUTERS/Ray Stubblebine