- Two existing TRSL relationships are bringing new funds to market
- FY 2017 commitments could hit $575 mln
- Firm backs new funds from Apollo, Carlyle, NEA
Teachers’ Retirement System of Louisianaincreased its anticipated commitment pace for buyout and special-situations funds by $175 million for the current fiscal year, according to pension documents obtained through an open-records request.
Louisiana Teachers’ had planned to commit between $300 million and $400 million to private equity in the current fiscal year. Under the new plan, which was approved by the board, the $17.8 billion system could commit as much as $575 million.
“Two longtime existing managers that have delivered strong returns across market cycles for the portfolio are raising successor funds that will not be open [in] fiscal year 2018,” consultant Hamilton Lane wrote in a report for the pension system. “On a long-term planning basis, the buyout allocation will remain within the stated target range.”
Louisiana Teachers’ PE portfolio includes its holdings in venture capital as well. Its expected commitment pacing for venture capital funds, as much as $100 million this year, remains unchanged.
TRS of Louisiana had a 12 percent allocation to the asset class as of Feb. 28. The retirement system targets a 13 percent allocation.
Louisiana Teachers’ approved three new commitments to private markets funds at its April 6-7 meetings. All three are subject to final negotiation of terms.
The largest of those commitments, up to $100 million, went to Carlyle Realty Partners VIII. Carlyle Group is targeting $4 billion to $5 billion for its latest real estate fund, which will invest in properties valued between $25 million and $100 million, a Hamilton Lane report shows.
Louisiana Teachers’ also approved commitments of as much as $50 million each to Apollo European Principal Finance Fund III and New Enterprise Associates 16.
Apollo Global Management set a $3.5 billion target for its latest European distressed debt fund, which will invest in a wide range of credit and debt-related assets. NEA is targeting $3 billion for a new fund that will invest in multistage venture capital.
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