New York State Teachers’ backs GTCR, Clearlake

  • $75 mln allocation to New MainStream approved
  • $8 bln PE portfolio returned over $700 mln distributions
  • New York State Teachers’ PE netting 12.2 pct IRR

New York State Teachers’ Retirement System approved commitments totaling $375 million since July, including a $75 million allocation to New MainStream Capital’s $350 million third fund.

The $107.5 billion retirement system secured its allocation to New Mainstream’s third fund in late September, when the vehicle was scheduled to hold an interim close, according to a fund presentation obtained by Buyouts. The firm will use its new fund to invest in lower-mid-market healthcare and business services companies.

NYSTRS also committed $130 million to GTCR’s oversubscribed 12th flagship fund in September, after Executive Director and CIO Thomas K. Lee had greenlit an allocation of up to $150 million the month before. GTCR Fund XII held a final close on $5.25 billion in October.

Another $150 million allocation for Clearlake Capital Partners’ fifth fund is slated to close in November, NYSTRS documents show. Lee approved the commitment earlier this month.

The firm’s target for Fund V is unclear. The firm could not be reached for comment.

Clearlake, which invests in mid-market businesses in the technology, industrial and consumer sectors, closed its fourth fund on $1.38 billion in 2015.

New York State Teachers’ Retirement System’s $8 billion private equity program generated positive cash flows in the third quarter. The pension system contributed $370 million to its general partners for new investments. GPs returned $704 million in distributions to the pension from its existing investments.

Through June 30, the private equity portfolio had netted a 12.2 percent internal rate of return and 1.61x multiple for NYSTRS.

Action Item: Read New York State Teachers’ quarterly update: