Swedish pension fund looks to Asia
, Sweden’s largest pension fund manager, is set to back its first Asian-based fund in 2010 as part of a major ramp-up of its private equity allocation.
The pension fund, ,also known as AP1 and which has an actual allocation to private equity of just over 1%, will seek to commit between about $300 million and $350 million to the asset class during 2010. The goal is to gradually increase its allocation to a target of 5 percent.
In making its first commitments in Asia, the pension fund manager will seek investments in secondary vehicles and distressed private equity, among others.
AP1 currently has about $280 million invested in private equity funds. Its allocation is split about equally between European and U.S. private equity funds.
The fund’s alternative investments include real estate holdings, private equity (including venture capital), hedge funds and opportunistic investments. AP1’s private equity holdings consist of direct fund holdings in the Nordic market and three customized mandates in the international market managed by Swiss asset management group LGT Partners and U.S.-based Hamilton Lane and WP Global Partners. —Angela Sormani
Okla. Police moves to the sidelines
The $1.6 billion Oklahoma Police Pension & Retirement System has run out of capacity to back new private equity funds, according to Executive Director and Chief Investment Officer Steven Snyder.
After committing $7.5 million to Oaktree Capital Management’s OCM Opportunities Fund VIII in December, the state pension fund is apparently too far above its target allocation to consider new commitments.
The Oklahoma Police Pension & Retirement System had an actual allocation to private equity of 11.7% as of Dec. 31, ahead of a target allocation to private equity of 10%, although still within an acceptable range of 5% to 15 percent.
The LP’s private equity program includes distressed debt (with $103.5 million invested in 11 funds), venture capital ($90.5 million in 10 funds), mezzanine debt ($42 million in five funds), buyout ($142 million in 12 funds) and secondary funds ($20 million in one fund).
The investment in OCM Opportunities Fund VIII was the only fund the Oklahoma limited partner backed in 2009. The year before, the state pension fund made three commitments, including $7.5 million to Oaktree Opportunities VII B; $10 million to TCW Mezzanine Fund V; and $10 million to Calera Capital Fund IV. —Nancy Gordon
New York Common pledges to emerging managers, Asia
The $126 billion New York State Common Retirement Fund recently announced four pledges made in December totaling $160 million, three to emerging managers and one to a firm investing in China and India.
Bunker Hill Capital received a $25 million pledge for Bunker Hill Capital II through the Pioneer Partnership Fund B, which is part of the state pension fund’s emerging manager program. The Boston-based private equity firm focuses on buyouts of lower-mid-market companies.
Relativity Capital received a $30 million slug for its debut vehicle, Relativity Fund, also via the Pioneer Partnership Fund B. As of December, Relativity had raised at least $168.5 million, putting the Arlington, Va.-based firm more than half way to its goal of $300 million.
Clearlake Capital Group, which received a $15 million commitment from the LP in December, got an additional $5 million commitment to Clearlake Capital Partners II through the Pioneer Partnership Fund A. New York City-based Clearlake Capital takes control positions in small and mid-size companies. As of April, the firm had secured more than $200 million for the fund, which has a hard cap of $500 million.
Also, New York Common re-upped to the tune of $100 million with Hong Kong-based SAIF Partners. The firm has earmarked SAIF Partners IV for growth equity opportunities and buyouts in Greater China and India, making investments of between $10 million and $100 million. —Nancy Gordon