LPs

NYS Common committed $300 mln to PE in February

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New York State Common Retirement Fund, pension fund, private equity
People walk along Gantry Plaza State Park in Long Island City, New York. Nov. 7, 2018. Reuters/Eduardo Munoz
  • Biggest new pledge to CVC’s latest Asia fund
  • Smaller commitments to local venture, a first fund
  • 2019 pacing slower than December

After a busy finish to 2018, New York State Common Retirement Fund took a more moderate approach to PE pacing in the first two months of 2019.

The $207 billion fund committed a total of $6.3 billion to private equity in 2018, closing the year with more than $1.1 billion in commitments to PE funds in December alone. By contrast, the retirement fund started slower in 2019, with no new commitments in January and $300 million in February.

The biggest pledge was $250 million to CVC Capital Partners’ Asia Pacific V fund, targeting control and joint/control investments across Asia, primarily in Southeast Asia. CVC, which closed its fourth Asia fund on $3.5 billion in 2014, is a current relationship for CRF.

The state also made a trio of smaller PE commitments, including an emerging manager’s first fund.

New York committed $20 million to Wavecrest Growth Partners I, which will make growth equity investments in lower-middle-market B2B tech businesses. The commitment was made through an emerging manager fund advised by Muller and Monroe, an emerging manager program partner for the state pension. Wavecrest is a new relationship for the pension.

The state also committed $20 million to Contour Venture Partners’ Contour Opportunity Fund II, which will target late-stage venture investments in tech, and $10 million to Armory Square Ventures Fund II, which will make seed and early-stage technology investments.

Both funds will invest locally: Contour will focus primarily on opportunities in the Northeast region while Armory Square will focus specifically on Upstate New York. Contour is a current partner for CRF, while Armory Square is a new relationship.

The retirement fund also committed $300 million to funds in its “opportunistic alternatives” portfolio and $268 million to real assets. In opportunistic alternatives, it committed $150 million each to TPG Sixth Street Partners’ TSSP Adjacent Opportunities Partners fund, an open-end vehicle focused on defensive yield, stressed opportunities and distressed non-control investments.

The system also committed to Hollis Park Value Fund, which will focus on opportunistic investments across structured rates, structured credit and structured derivatives.

In real assets, the retirement fund committed $268 million to EQT Infrastructure IV, which is focused on infrastructure investments in energy, transport and logistics, environmental, telecom and social assets in the Nordic region of Europe, Continental Europe and North America.

Action Item: See the NYS Comptroller’s latest investment disclosure report here: https://bit.ly/2GbbEEL