Firms & Funds

Illinois Teachers’ commits $100 mln to NGP XI

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  • NGP fund’s hard cap is $5 billion
  • Illinois Teachers invested in predecessor
  • Carlyle Group affiliate is placement agent

Illinois Teachers’ Retirement System committed to the oil and gas investment pool at its August meeting, the $45.3 billion pension system said recently. The retirement fund repeated a $100 million commitment it made to NGP Natural Resources X, which closed in 2012 with $3.6 billion in pledges.

In another big pension LP move into the fund, the Pennsylvania Public School Employees’ Retirement System pledged $100 million to NGP Natural Resources XI LP, according to an investment memo for the system’s June meeting.

NGP Natural Resources X earned the retirement system a net multiple of 1.1x and a net IRR of 14 percent as of Dec. 31, according to the Pennsylvania investment memo.

NGP plans to invest $30 million to $200 million per transaction, with 20 to 30 investments in NGP Natural Resources XI. NGP is making its own commitment of $325 million for Fund XI. NGP planned to hold a first closing on Fund XI in September, according to an investment memo to the pension system from its private equity consultant, Portfolio Advisors LLC, itself a past investor in NGP through its funds of funds.

“Investors who participate in closing prior to September 30 will receive a management fee ‘holiday’ resulting in management fees charged only on net invested capital until January 1, 2016,” according to the investment memo.

After announcing a strategic partnership with NGP in late 2012, The Carlyle Group owns 55 percent of NGP’s revenue but has no influence on the day-to-day management of the fund, according to the investment memo.

TCG, an affiliate of The Carlyle Group, is serving as a placement agent for NGP Natural Resources XI LP, according to a Form D filing.

In other action related to its $4.8 billion private equity portfolio, the Illinois Teachers’ Retirement System committed $100 million to Baring Private Equity Asia Group of Hong Kong. Baring Asia already handles $44 million in assets for the retirement system.

Including all asset classes, the pension system notched an 18 percent rate of return during fiscal year 2014, gross of fees, ahead of its 16.4 percent benchmark.