New York Teachers Hot For Energy Fund

New York State Teachers’ Retirement System voted at its July 29 meeting to commit up to $100 million to Energy Capital Partners II LP, a buyout fund that invests in North American energy infrastructure opportunities, mainly in the power generation, renewable, electric transmission and midstream gas sectors.

Energy Capital Partners is raising up to $3.5 billion for its second fund, according to a regulatory filing. Park Hill Group and Bel Air Securities are serving as placement agents. The Short Hills, N.J.-based firm closed its debut fund in 2006 with $2.25 billion.

When asked roughly how much the pension fund might commit to private equity during the rest of 2009, spokesperson Heidi Brennan said it would depend on the quality of the available opportunities and how they fit with the pension fund’s strategic plan.

New York State Teachers’ Retirement System has 58 general partner relationships and more than 100 different funds in its private equity program. The limited partner, which has an appetite for buyout, venture capital, international and special situation funds, has an actual allocation to private equity of 6.7 percent, with a target of 7 percent and a range of 4 percent to 12 percent, according to Brennan.