NYC Employees’ pension books strong PE returns

New York City Employees’ Retirement System’s private equity portfolio returned over 37 percent on an annual basis.

Many public pension funds have reported strong one-year returns for their private equity portfolios. However, valuations are expected to drop once GPs begin reporting valuations for more recent market activity. Second-quarter marks, which start to publish in August, are expected to reflect more of the turmoil roiling the economy.

“We just saw extraordinary returns,” interim CIO Michael Haddad said.

Haddad said standout results came from funds managed by KKR, EQT and Platinum Equity.

The $84.3 billion pension fund also announced three commitments through its update for the first quarter of 2022. NYC Employees targets a 7 percent allocation to private equity.

These include a $146 million commitment to Permira VIII, a $45.8 million commitment to TPG Rise Climate and a $91.6 million commitment to a TPG Rise Climate co-investment vehicle.