NYS Common commits to third Snow Phipps fund

  • Pension commits $200 mln to Snow Phipps
  • Backs 2 Asian PE funds through Asia Alternatives
  • NYS Common has 7.8 pct allocation to PE

New York State Common Retirement Fundre-upped $200 million to Snow Phipps Group, according to a disclosure published on the pension’s website.

Snow Phipps launched its third flagship fund in November, according to SEC filings. The firm’s target could not immediately be determined. Snow Phipps and New York State Common Retirement Fund did not respond to requests for comment.

Snow Phipps, which Ian Snow and Ogden Phipps co-founded in 2005, specializes in using operating partners to bolster its mid-market portfolio companies. The firm typically invests $50 million to $150 million per deal, primarily in North American industrial, services and consumer companies.

The firm’s first fund, which raised $620 million, was netting a 7 percent internal rate of return and 1.26x multiple as of Dec. 31, New York City pension documents show. Fund II, an $844 million 2011 vintage fund, netted a 17.5 percent IRR and 1.47x multiple as of that date.

In addition to its commitment to Snow Phipps, New York State Common Retirement Fund also committed $25 million to Chinese and Southeast Asian investment vehicles through its separate account with Asia Alternatives, its investment disclosure says.

The retirement system committed $15 million to Farallon Asia Special Situations III, a debt fund focusing on Indonesian and other Southeast Asian investments. Another $9.9 million went to Boyu III, a large-cap growth and buyout fund operating in China.

NYS Common Retirement Fund managed $178.6 billion as of March 31. The retirement system held 7.8 percent of its assets in private equity.

Action Item: More about New York’s pension: www.osc.state.ny.us/pension