- Tech, VC commitments dominate Q1 activity for New York State Teachers’
- A 200 mln euro commitment to Cinven to close this week
- $7.8 bln PE portfolio netting 11.95 pct IRR through March
New York State Teachers’ Retirement System committed more than $450 million to private equity and venture capital funds in the first quarter, the vast majority of which went to technology-sector specialists, according to its April 28 meeting materials.
The Q1 total does not include a commitment of up to 200 million euros ($225 million) to Cinven’s sixth flagship fund, which Executive Director and Chief Investment Officer Thomas Lee authorized in January.
New York State Teachers’ Retirement System expects to finalize its commitment to the Sixth Cinven Fund LP on April 27, the day before Cinven’s projected final close.
Besides Cinven, the $109.7 billion retirement system’s largest commitment of the first quarter went to Thoma Bravo’s 12th flagship fund, which is targeting $7 billion for investments in software and technology-enabled services companies. New York State Teachers’ secured a $200 million allocation to Thoma Bravo Fund XII on February 19.
The retirement system further bolstered its exposure to the technology sector with a $100 million commitment to Technology Crossover Ventures. TCV IX set a $2.25 billion target for investments in late-stage technology companies with valuations of up to $1 billion, according to a Hamilton Lane report for Teachers’ Retirement System of Louisiana.
New York State Teachers’ also committed a combined $80 million across a pair of funds managed by venture capital firm Spark Capital, which counts Twitter and Slack among its portfolio companies. New York State Teachers’ backed Spark Capital Growth Fund II for $60 million. Fund II has a $500 million target, according to an SEC filing.
The retirement system received a $20 million allocation to Spark’s fifth flagship fund, which is targeting $370 million. Lee authorized a commitment of as much as $25 million to Fund V in March, according to meeting materials.
New York State Teachers’ committed $75 million to Tenex Capital Partners II in January. Tenex Capital Management closed Fund II on its $814 million hard cap in March.
The New York State Teachers’ Retirement System valued its private equity portfolio at $7.8 billion as of March 31, according to its meeting materials. The portfolio returned an 11.95 percent internal rate of return and 1.56x multiple since its inception.
Action Item: To read more about New York State Teachers’ private equity portfolio, visit http://bit.ly/1pygpMz