Massachusetts Pension Reserves Investment Management (MassPRIM) is considering an increase to its commitment to venture capital, according to the Boston Business Journal.
The state workers pension fund, which last year committed 9% of $599 million set aside for all alternative investments, wants to increase that commitment level to 40% of $800 million allotted for investing in private equity funds.
Wayne Smith, MassPRIM’s senior investment officer, did not return calls for comment. But he told the Boston Business Journal that the planned hike in commitments, which venture funds draw on when they want to invest, doesn’t reflect not any kind of disappointment MassPRIM has had in buyouts. Instead, he said there’s an increasing number of venture funds being raised, compared with last year. Smith added that about two-thirds of the $800 million will probably go to buyout funds.
Last year, the pension fund committed $544 million to seven buyout funds and $55 million to two venture funds, Smith said.
As previously reported, MassPRIM recently named Michael Travaglini its new executive director. Travaglini was the chief of staff to former treasurer Shannon O’Brien and is the brother of Senate President Robert Travaglini. Michael Travaglini serves as chair of the MassPRIM board that is responsible for approving the new investments.