Ohio LP To Pledge $150M-$250M To PE In FY2010

The School Employees Retirement System of Ohio said it plans to commit between $150 million and $250 million to private equity partnerships in its fiscal year 2010, which began on July 1.

The limited partner said the pledges would go mostly to buyout funds, although the staff will continue to explore international and special situation funds, such as energy, secondary and distressed debt vehicles, as well as co-investment opportunities.

The pension fund said its objectives for the new fiscal year include continuing to actively monitor current private equity managers via video conferencing, quarterly conference calls, advisory boards, annual meetings, periodic meetings in Columbus, Ohio, and on-site meetings as necessary; and continuing to maintain the private equity portfolio near its allocation target of 10 percent.

The LP’s private equity program has a 10 percent target allocation, with a range of 5 percent to 15 percent. As of May 31, the actual allocation to private equity was 7.8 percent, according to pension spokesperson Tim Barbour.

The fiscal-year 2009 annual investment plan for private equity called for committing between $225 million and $325 million to new private equity partnerships. Through March 2009, the board had approved about $185 million in commitments to five private equity funds. The breakdown of those pledges includes €30 million ($43 million) to Charterhouse Capital Partners IX, a European buyout fund; $40 million each to buyout funds Freeman Spogli Equity Partners VI and Odyssey Investment Partners Fund IV; $25 million to Transportation Resource Partners III; and $40 million to distressed fund Oaktree Principal Fund V, according to Barbour.