LPs

New York State Teachers’ goes down under with $100 mln

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  • Commits combined $177 mln to Pacific Equity Partners, Phoenix Equity Partners
  • Another $200 mln in commitments to TSG to close in Q4
  • NYSTRS values PE portfolio at $7.9 bln

The New York State Teachers’ Retirement System committed more than $175 million to international private equity funds since July, according to its October 29 meeting materials.

The $109 billion retirement system’s third-quarter commitments included significant commitments to international funds in English-speaking countries, including $100 million to Australia- and New Zealand-focused Pacific Equity Partners Fund V. Pacific Equity Partners set a A$3.5 billion ($2.53 billion) target for its latest fund.

NYSTRS also committed $77 million to Phoenix Equity Partners, a U.K.-based mid-market firm marketing its first fund since 2010. Phoenix’s senior partners did not respond to a request for comment.

NYSTRS’ report on its recent private equity activity also detailed three commitments that will likely close in the fourth quarter. Those included up to $200 million to a pair of funds managed by TSG Consumer Partners totaling $200 million. The retirement system will commit up to $160 million to TSG7-A, which is targeting $2 billion for investments in branded consumer products companies. The pension also committed up to $40 million to TSG7-B, a $500 million fund that will make smaller investments in the same sector.

In addition to its commitments to TSG, NYSTRS will likely close on a $75 million commitment to Waud Capital Partners IV in October. Waud Capital Partners typically invests between $50 million and $100 million per deal in lower middle-market companies. The target for Fund IV was not disclosed. Waud declined to comment.

The retirement system valued its private equity portfolio at $7.9 billion as of September 30.

In August, Gerald Yahoudy II replaced longtime private equity chief John Virtanen as the head of the pension’s private equity program.

Action Item: See NYSTRS’ quarterly PE report here: http://bit.ly/1O5q6gf