Maryland makes big move in PE with $2.3 bln of commitments in 2017

  • Maryland backs large flagship funds from Bain, CVC
  • Largest commitment to Asian fund-of-funds
  • Maryland PE program valued at $5.6 bln

Maryland State Retirement and Pension System committed more than $2.3 billion to private equity this year, documents obtained by Buyouts via an open-records request show.

The $50.3 billion system distributed its commitments across 20 funds, including major flagship buyout vehicles raised by Bain CapitalClayton Dubilier & RiceCVC Capital Partners and New Mountain Capital Partners.

Maryland’s single largest commitment went to MD Asia III, an Asia-focused fund-of-funds managed by MD Asia Group. The retirement system allocated $250 million to Fund III in September (see chart).

Fund Date of Funding Strategy Commitment Size (millions)
Great Hill Partners VI 1/31/2017 Growth Equity $100
HG 8 2/15/2017 Upper Mid-Market Buyout £100
Wind Point Partners VIII 2/17/2017 Mid-Market Buyout $100
CD&R X 2/24/2017 Large Buyout $100
Landmark Equity Partners XVI 3/3/2017 U.S. Secondary $150
Landmark Equity Partners XVI Co-Investment Fund 3/3/2017 U.S. Secondary $75
Vistria Fund II 3/3/2017 U.S. Lower Mid-Market Buyout $75
TDR IV 3/10/2017 European Mid-Market Buyout €71.47
Silver Lake Partners V 4/6/2017 Large Buyout – Tech $95
Bain Life Sciences 5/12/2017 Growth Equity – Life Sciences $72.5
LLR V 5/15/2017 Mid-Market Buyout $150
CVC VIII 5/26/2017 Large Buyout $135.6
Apollo IX 6/1/2017 Large Buyout $270
New Mountain V 6/29/2017 Upper Mid-Market Buyout $150
Bain XII 8/1/2017 Large Buyout $200
Blue Wolf IV 9/29/2017 Small Buyout $42
Institutional Venture Partners XVI 9/21/2017 U.S. – Late Stage Venture $65
MD Asia III 9/22/2017 Asia – Fund-of-Funds $250
Frontier Fund V 10/20/2017 Growth Equity $75
Frazier Life Science IX 10/31/2017 Venture $40
Source: Maryland State Retirement and Pension System

Private equity was among the system’s top-performing individual asset classes over the year ended Sept. 30, netting a a 19.2 percent return. The portfolio was beating its State Street Private Equity Index benchmark in both short- and long-term time horizons, a report by consultant Meketa Investment Group shows.

The $5.6 billion private equity portfolio has netted a 7.7 percent return since inception.

Action Item: Maryland’s retirement system: