Reuters – Carlyle Group Will Manage $150M Fund for Indiana Investments

Private equity firm Carlyle Group LP and its Dutch asset manager arm AlpInvest Partners said on Monday the Indiana Public Retirement System has committed $150 million for the firm to invest in companies and other funds based in, or affiliated with, the state, Reuters reported. Investments can be in private equity, credit, real estate or infrastructure, said Carlyle, which will run Indiana Investment Fund II on behalf of the state’s public pension fund.

(Reuters) – Private equity firm Carlyle Group LP and its Dutch asset manager arm AlpInvest Partners said on Monday the Indiana Public Retirement System has committed $150 million for the firm to invest in companies and other funds based in, or affiliated with, the state.

Investments can be in private equity, credit, real estate or infrastructure, said Carlyle, which will run Indiana Investment Fund II on behalf of the state’s public pension fund.

“By investing capital here in Indiana, INPRS achieves the dual goal of targeting premium rates of returns while nurturing Hoosier entrepreneurs and their businesses,” Indiana Public Retirement System Executive Director Steve Russo said in a press release. “We are impressed with the track record and expertise of the Carlyle-AlpInvest partnership and are confident it will serve us well.”

The Indiana Public Retirement System, which had over $27.2 billion in assets as of Dec. 31, 2012, represents public universities, schools, municipalities and state agencies. It issued a public request in September 2012 for proposals from alternative asset managers to administer the fund, seeking to invest $50 million in Indiana-related funds and $100 million in direct investments in Indiana.

The fund’s predecessor, the $155 million Indiana Investment Fund I, was launched in 2006 and is administered by Credit Suisse Group AG.

Carlyle and other large private equity firms such as Blackstone Group LP have sought to diversify their businesses away from leveraged buyouts. AlpInvest, which Carlyle acquired in 2011, is a so-called fund of funds that allows investors to invest in several funds through one commitment.

Carlyle’s investment mandate from the Indiana Public Retirement System follows commitments from other pension funds to private equity firms.

In 2011, New Jersey’s pension fund committed up to $1.8 billion to funds managed by Blackstone. The Teacher Retirement System of Texas also pledged $3 billion each to Apollo Global Management and KKR & Co LP to manage in separate accounts.