Idaho on pace to surpass 2015 PE commitments

  • Idaho earmarks more than $150 mln for PE through July
  • Kohlberg & Co, EPIC Ventures commitments pending
  • Retirement system committed $190 mln to PE in 2015

Public Employees’ Retirement System of Idaho is on pace to surpass the $190 million it committed to private equity in 2015, according to a Hamilton Lane report included in its July meeting materials.

The $15.2 billion retirement system secured or earmarked more than $150 million to PE funds through July, the report shows. Last year, Idaho committed $190 million across four funds managed by Blackstone Group, Hamilton Lane and TPG.

Idaho inked a pair of re-ups to mega-funds in first-half 2016. The system secured a $36 million allocation to Advent International’s $13 billion flagship fund and $50 million to Kohlberg Kravis Roberts & Co’s 12th North American fund, targeting at least $10 billion.

The retirement system has also earmarked $70 million across a pair of commitments that have yet to close, according to the report.

Idaho committed as much as $50 million to Kohlberg & Co’s new flagship fund. The retirement system’s allocation to Kohlberg Investors VIII remains subject to legal negotiations. Fund VIII’s target could not immediately be determined.

Kohlberg & Co’s previous fund, a $1.6 billion 2012 vintage, drove Idaho’s PE returns over the second half of 2015. The fund’s holdings appreciated by $2 million in that period, netting Idaho a 9.7 percent IRR, the report shows.

The retirement system also approved a $20 million commitment to EPIC VenturesV, which is expected to close later in the summer, according to the report.

Idaho valued its portfolio at a little less than $1 billion at year end, the Hamilton Lane report said. The retirement system’s portfolio netted an 8.24 percent IRR since inception.

Action Item: Public Employees’ Retirement System of Idaho: