NYS Teachers’ spreads $350 mln over three PE funds

  • NYSTRS backs Silver Lake, Valor Equity, One Rock
  • PE portfolio valued at $7.8 bln
  • NYSTRS PE portfolio cash-flow positive in Q1

New York State Teachers’ Retirement System committed $350 million across three private equity funds in recent months, an investment disclosure included in materials for its upcoming meeting shows.

The largest commitment went to Silver Lake Partners V, the $15 billion fund Silver Lake closed earlier this month. The fund will make large-scale tech-sector investments.

The firm’s previous fund, which raised $10.3 billion in 2013, was netting a 32.1 percent internal rate of return and 1.4x multiple as of Sept. 30, Washington State Investment Board documents show.

The system also committed $75 million each to Valor Equity Partners’ new flagship fund and One Rock Capital Partners II, which held a final close on its $964 million hard cap earlier this month.

The commitments to One Rock Capital Partners and Silver Lake have closed. The commitment to Valor’s fourth flagship fund has yet to be finalized, NYSTRS spokesman John Cardillo told Buyouts.

Valor’s previous fund raised $490 million from an investor group in 2015. Fund II, a 2007 vintage, was netting a 22.4 percent internal rate of return and 2.6x multiple through June 30, according to California Public Employees’ Retirement System.

The firm did not respond to a request for comment. Cardillo declined to provide additional information about the fund.

NYSTRS valued its PE portfolio at $7.8 billion as of March 31. The portfolio was cash positive in the first quarter, returning $384 million in distributions against $247 million in contributed commitments for new investments.

Since inception, New York State Teachers’ private equity portfolio has netted a 12 percent IRR and 1.58x multiple on invested capital since its inception.

Action Item: For more information about NYSTRS, visit www.nystrs.org