NY Teachers’ Winter Meeting Brings Decisions –

The New York State Teachers’ Retirement System (NYSTRS) board met on January 27 and authorized investments in a handful of private equity funds as well as approved agreements with investment managers.

It also voted to invest up to $100 million in Carlyle Partners IV. The Carlyle Group is seeking $6.5 billion in what is expected to be one of the biggest buyout funds of its kind and quite possibly the last fund for the firm’s founders.

The pension system also approved an investment of up to $250 million for a new co-investment fund from New York-based secondary firm Lexington Partners. Lexington Co-Investment Partners II will be a joint venture between newcomer NYSTRS and the Florida State Board of Administration. The investment is part of a total of $500 million that NYSTRS plans to invest in the $1 billion co-investment fund (see related article, page 21).

The NYSTRS board also voted to invest up to $75 million as an LP in DLJ Real Estate Capital Partners II. New York-based buyout firm JLL Partners can count on up to $50 million for JLL Partners Fund V. JLL’s last buyout fund closed in 2002 with $750 million.

The pension system authorized its executive director to contract with Callan Associates to serve as NYSTRS’ private equity and real estate consultant in separate one-year contracts.

NYSTRS also renewed asset management agreements with Barclays Global Investors, Capital Guardian Trust Co., Iridian Asset Management, Black Rock Financial Management and Clarion Capital. The board also authorized the termination of asset management contracts with Baille Gifford Overseas Ltd., Bank of Ireland Asset Management, Morgan Stanley Investment Management and Merrill Lynch Investment Managers.