Maine pension system commits $60 mln each to GTCR, Onex funds

  • MainePERS commits to GTCR Fund XI
  • Pension fund to invest in Onex Partners IV
  • Actual private allocation below 10 percent target

As of Sept. 30, MainePERS actual asset allocation to private equity stood at 2.1 percent, well below its target allocation of 10 percent, according to the pension fund’s web site. The pension fund set plans in 2012 to build exposure to private equity, infrastructure and real estate funds, Buyoutsreported in December.

MainePERS, which currently manages about $11.7 billion, has committed $60 million to GTCR Fund XI LP, subject to final due diligence and legal review, Andrew Sawyer, chief investment officer, said in an email.

Chicago-based GTCR has been in the market to raise $3.25 billion for its eleventh core fund, aimed at consolidation deals.

The pension system committed $30 million to GTCR Fund X in 2011. As of March 31, MainePERS has contributed $17.3 million to the fund and reported a current market value of $20.1 million for a total value multiple of 1.2x.

MainePERS also committed up to $60 million to Onex Partners IV, LP, a fund managed by Onex Corp. The publicly-traded Canadian buyouts investor is targeting $4.5 billion for its new fund — a notch below its vintage 2008 Onex Partners III, which raised $4.7 billion.

Onex does not currently appear on the MainePERS private equity market investments summary. But plenty of other limited partners have invested in past Onex vehicles, including Alaska Permanent Fund Corp, California Public Employees’ Retirement System, California State Teachers’ Retirement System, Canada Pension Plan Investment Board, Illinois Municipal Retirement Fund, Iowa Public Employees’ Retirement System, and the Los Angeles County Employees Retirement Association.

Among MainePERS largest commitments is a $75 million pledge to several funds, namely Global Infrastructure Partners in 2008, Global Infrastructure Partners II in 2012, ArcLight Energy V in 2011, MetWest Enhanced TALF Strategy Fund in 2009, KKR Infrastructure Fund in 2010 and Blackstone Real Estate Partners VII and Meridiam Infrastructure North America II LP, both in 2012. Among those investments, the vintage 2006 Global Infrastructure Partners fund topped the list with a 1.6x total value multiple as of March 31, according to the pension fund’s website.