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MassPRIM forms new relationship with JMI Equity

  • AUM: $77.2 bln
  • Why this is important: MassPRIM creates new relationship with JMI
  • Actual allocation to PE: 10.9 pct
  • Target allocation to PE: 12 pct
  • Contact: Cosmo Macero Jr., O’Neill & Associates, +1 617-646-1000

Massachusetts Pension Reserves Investment Management Board at its Nov. 29 meeting committed $105 million to two managers, investing in software-focused growth equity and venture capital.

The $77.2 billion pension system approved a commitment of up to $75 million to JMI Equity Fund IX and $30 million to Flagship Pioneering Special Opportunities Fund II.

MassPRIM had not invested in any previous JMI Equity funds, but it said that nearly all of JMI’s prior funds were in the first or second quartile in PE industry peer performance rankings.

JMI will target growth-stage North America-based companies that provide software and technology-enabled services for its ninth fund, which has a target size of $1.1 billion.

JMI Equity was also added to PRIM’s roster of approved managers for potential co-investments, based on its track record, co-investment history and willingness to partner with PRIM.

PRIM’s commitment to Flagship Pioneering continues a long relationship with the venture firm, which invests in seed, early- and late-stage companies in therapeutics, nutritional health and agriculture.

The pension has invested in six previous Flagship Pioneering funds since 2004. The Special Opportunities fund will invest in Flagship-created companies during their growth stage, according to PRIM.

PRIM has a 10.9 percent allocation to PE. Its PE consultant is Hamilton Lane.

Private equity was PRIM’s highest performing asset class for the year ended June 30, with a 21.84 percent return.

The pension system was ranked as the top private equity performer in American Investment Council’s 2018 study of public pensions, with a 10-year annualized return of 13.37 percent.

Action Item: MassPRIM’s website: https://bit.ly/2RnnFtF