The $33 billion
The pension fund has made the following commitments:
• Up to $50 million to First Reserve Fund XII.
• Up to $20 million to Morgenthaler Venture Partners IX.
• Up to $10 million to Brynwood Partners VI. Brynwood Partners focuses on consumer products, light manufacturing in low-capital-intensive industries, service businesses and specialty retail companies. The Greenwich, Conn.-based firm makes control investments in lower-middle-market companies and acquires companies with enterprise values between $15 million and $125 million.
Brynwood Partners is raising up to $400 million for Fund VI. The firm reached its $250 million target for Brynwood Partners V in 2005. PSERS commited $10 to fund V. —Nancy Gordon
Philly pledges $20M to Blackstone
The $4.7 billion city pension fund, with 9% invested in private equity, remains well below its target allocation of 12 percent.
“We would hope to reach our target in three to four years,” says McDonough.
Blackstone Capital Partners VI is earmarked for leveraged buyouts, corporate partnerships, growth equity and strategic minority investments around the world. The firm held a first close in August at $7.1 billion. Altogether, the firm seeks $19.5 billion for the fund, which had 76 backers as of mid-August, according to a regulatory filing.
Philadelphia tends to make individual commitments of between $15 million and $30 million, and uses
Philly looks at opportunities in Eastern Europe, Asia
Meanwhile, the City of Philadelphia Board of Pensions and Retirement is looking to build a globally diversified portfolio, and has its eye on opportunities in Eastern Europe, including the Czech Republic, Romania and Bulgaria, as well as in Japan, South Korea and Australia.
The city pension fund also plans to steer clear of what it considers to be emerging markets in Asia.
Philly has 19% of its alternative portfolio in Western Europe; 1% is in Latin America, as part of a global fund; and it also has some exposure to Australia and Turkey.
The first foray into Eastern Europe or Asia would probably be through a roughly $20 million commitment to a fund of funds, and would probably not be made any sooner than the next two years.
Past commitments that the city pension fund has made overseas include Edinburgh, Scotland-based
The pension plan also committed $21 million to