CalSTRS committed $5.5 bln to private equity in 2019 H1

California State Teachers’ Retirement System made $5.5 billion in private equity commitments in the first half of 2019, according to a presentation released ahead of the $241 billion pension fund’s meeting this week.

The allocations are:

• $43 million to LAV V, a $750 million global venture capital fund run by Lilly Asia Ventures and focused on biosciences that closed in February;
• $88 million to TCV X, a $3 billion North American venture capital fund run by TCV, focused on tech investments that closed in January;
• $200 million to Lonestar Fund XI, an $8.1 billion global debt-related fund managed by Lone Star Funds that closed in February;
• $300 million to Summit Growth Equity X, a $4.9 billion North American growth equity fund run by Summit Partners that closed in March;
• $150 million to Arsenal V, a $2.36 billion North American buyout fund focused on specialty industrials and healthcare run by Arsenal Capital Partners that closed in April;
• $150 million to Blackstone Energy Partners III, a $5 billion North American energy fund run by Blackstone, according to the Meketa report;
• $750 million to Blackstone VIII, a global buyout fund run by Blackstone with a $25 billion cap that had a $22 billion first close in March, according to Bloomberg;
• $50 million to Orbimed Royalty III, a $1.2 billion North American debt-related fund run by OrbiMed Advisers, focused on the healthcare industry;
• $25 million to Shasta VI, a U.S. venture capital fund run by Shasta Ventures, which will be focused on enterprise and technology consumer startups and has a $325 million target;
• $150 million to SSG Capital Partners V, a $1.5 billion Asian debt-related fund run by SSG Capital Management, targeting special situation and distressed investments in Asia;
• $280 million to TA XIII, a $8.5 billion North American buyouts fund run by TA Associates and that closed in May;
• $300 million to Advent GPE Fund IX, a $17.5 billion global buyout fund run by Advent International that closed in June;
• $150 million to Searchlight Capital Partners III, a North American and European buyout fund run by Searchlight Capital Partners with a $2.75 billion target and $3.25 billion cap;
• $250 million to Trident VIII, run by Stone Point Capital, a North American and European buyout fund with a $5.75 billion target and $6.5 billion hard cap;
• $650 million to Blackstone’s Strategic Partners VIII, a $11.1 billion North American buyout fund that closed in July;
• $225 million to NEA 17, a North American venture capital fund run by New Enterprise Associates with a $3.6 billion target;
• $500 million to Permira VII, a European buyout fund run by Permira Advisers, which the presentation valued at $11.9 billion and Private Equity International reported had about an $11 billion target;
• $30 million to Vista Equity Endeavor II, an $850 million North American fund run by Vista Equity Partners focused on enterprise software, data and technology-enabled businesses, which closed in July.

CalSTRS made three allocations to separate accounts where it will be the only LP:

• $250 million to AlpInvest SSMA, run by AlpInvest;
• $200 million to FCO MA V;
• $250 million to Ardian VIII – SMA.

CalSTRS also committed $325 million to eight co-investments and $150 million to a diversified secondary co-investment.

As of July 31, the value of CalSTRS’s private equity portfolio was $21.8 million, 9.04 percent of its total investment assets.

The presentation was prepared by Meketa Investment Group, which is the private equity consultants to the CalSTRS investment committee.