Firms & Funds

NYS Common secures large re-up with CVC

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New York State Common, CVC Capital Partners, private equity, pension fund
A statue of a girl facing the Wall St. Bull is seen, as part of a campaign by U.S. fund manager State Street to push companies to put women on their boards, in the financial district in New York, U.S., March 7, 2017. REUTERS/Brendan McDermid
  • $394 mln commitment to Fund VII is NY’s largest with CVC
  • Firm manages more than $1 bln of NYS retirement assets
  • CVC VII held final close on $18 bln in June

New York State Common Retirement Fundre-upped with CVC Capital Partners in May, allocating 350 million euros to the firm’s seventh flagship buyout fund, a disclosure from the pension system shows.

New York’s commitment, which equated to roughly $394 million at the time it was secured, is its largest with the European private equity firm by roughly $110 million.

The $192 billion pension system’s existing commitments to CVC total more than $1 billion across 11 previous funds, including its family of Asia-focused vehicles, according to a summary of the system’s holdings.

CVC closed its seventh flagship fund on 15.5 billion euros in June. With commitments from the GP, the firm will have roughly $18 billion to put to work over the next several years. Fund VII will invest in large leveraged buyouts in European and North American companies.

CVC’s sixth fund, a 2014 vintage, has yet to deliver meaningful returns this early in its lifecycle, according to California Public Employees’ Retirement Systemrecords. Fund V was netting a 13.4 percent internal rate of return and 1.5x as of Sept. 30.

New York State Common’s latest allocation brings its total commitments this year to roughly $1.2 billion. The public pension system’s PE program was valued at a little less than $14 billion as of March 31, 2016, according to its most recent annual report.

Action Item: For more information on New York State Common’s investment program, visit http://www.osc.state.ny.us