LPs

New York Common commits $1.96 bln to private equity in summer months

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New York State Comptroller, Thomas DiNapoli, New York State Common Retirement Fund, private equity, pension fund
New York State Comptroller Thomas DiNapoli. Photo courtesy of NYS Common.
  • August saw the largest commitment of the summer, a $750 mln pledge to Vista’s latest software megafund
  • System committed more than $1 bln in June
  • The pension fund has a 10 pct target for private equity

The $207.4 billion New York State Common Retirement Fund poured $1.96 billion into private equity investments in June, July and August, led by a $750 million commitment to Vista Equity Partners.

New York Common made its largest pledge to Vista Equity Partners Fund VII, which will pursue enterprise software opportunities in North America. Vista’s sixth fund closed at around $11 billion, and Vista is targeting at least $12 billion for Fund VII. The investment closed on Aug. 31, and was reported by the pension fund in early October.

New York made two other private equity commitments in August, committing $20 million to Contour Venture Partners Fund IV and $71 million to a Bridgepoint Capital co-investment. Contour will target seed and early-stage technology companies in New York.

June was a busy month for the retirement system, with more than $1 billion committed across six different investments. Providence Equity scored the biggest commitment, with $250 million allocated to Providence Equity Partners VIII, plus an additional $50 million to Providence Strategic Growth fund.

Providence’s main fund will target large buyout opportunities in communications, education and information services, primarily in Western Europe and the U.S., while the growth fund will pursue growth-oriented software and technology-enabled services companies in the lower-middle market, in North America.

New York Common also committed $287 million to:

  • Bridgepoint Europe VI, a 5.5 billion euro ($6.72 billion) pan-European middle-market buyout fund;
  • $150 million to GenNx360 Capital Partners Fund III, which focuses on North American middle-market industrial and business services companies;
  • $200 million to Towerbrook Investors Fund V, which closed on $4.25 billion in June and will focus on leveraged buyouts in distressed asset purchases, buildups and growth opportunities in Western Europe and the U.S.;
  • and $229 million to CVC Strategic Opportunities Fund II, which will target stable large-cap companies throughout Europe and the U.S.

July was a quieter month, with just one $25 million commitment to Hahn and Co Fund III,  a South Korean middle market fund. Hahn’s previous fund closed on $1.2 billion in 2015.

New York Common has a 10 percent target allocation to private equity, and had an 8.4 percent actual allocation as of March 31, 2018.

Action Item: See New York Common’s most recent financial disclosure report here https://bit.ly/2C80MG4