The Massachusetts Pension Reserves Investment Management Board, known as MassPRIM, recently committed more than half a billion dollars to six private equity firms in August, spreading its largesse among distressed debt firms, mid-market buyout shops and a turnaround specialist.
Senior Investment Officer Wayne Smith confirmed that the $50.6 billion pension fund pledged $200 million to Oaktree Capital’s distressed debt vehicle OCM Opportunities Fund VIII; $100 million to Centerbridge Partners’ distressed debt fund Centerbridge Special Credit Partners; $100 million to Charlesbank Capital’s mid-market buyout fund Charlesbank Equity Fund VII; $100 million to turnaround firm KPS Capital’s KPS Special Situations Supplemental Fund III; $25 million to lower middle market firm Westview Capital’s Westview Capital Partners II; and €20 million ($28 million) to Italian private equity firm Xenon Private Equity‘s fifth fund.
The limited partner’s target allocation to alternative investments is 10 percent; and the actual allocation now stands at 9.6 percent, said Smith. About 80 percent of the alternative portfolio is dedicated to what the LP calls special equity. This category includes leveraged buyouts, growth buyouts, industry consolidations, special situations and subordinated debt. Venture capital forms the other 20 percent of the alternative portfolio.
MassPRIM has relationships with more than 80 private equity managers, including Freeman Spogli Equity Partners, GTCR Golder Rauner, Landmark Equity Partners, Nautic Partners, Trident Capital and Weston Presidio Capital.
Hamilton Lane serves as the LP’s alternative investment consulting firm.