The $10 billion Ohio Police & Fire Pension Fund still has more than $300 million it can commit to private equity this year, as it climbs toward its target allocation to the asset class of 7 percent from its current level of 3.6 percent.
The limited partner’s investment plan for 2010 permits up to $350 million in commitments to private equity, but it has made only one pledge so far this year. To the tune of a $15 million pledge, it backed Francisco Partners’s third fund, which is earmarked for investments in the communications, hardware, information technology services and software sectors. That leaves up to $335 million available for commitments for the rest of the year, said Dave Graham, a spokesman for the fund.
Attractive areas for the pension fund in 2010 include buyouts, venture capital and secondary partnerships. Geographically, both U.S. and non-U.S. primaries and secondaries are of interest, but non-U.S. opportunities will only be accessed via funds of funds, Graham said.
Last year on the international front, Ohio Police & Fire Pension Fund pledged $35 million to the Adams Street Partnership 2009 Global Offerings Fund – Non-U.S. Fund Program and €43 million ($55 million) to HarbourVest International Private Equity Partners VI. Both are funds of funds.
Past commitments from Ohio Police & Fire have also gone to Blue Point Capital Partners, a mid-market specialist with an Asian strategy; secondary firm Montauk TriGuard Management; Park Street Capital, a funds-of-funds manager; and Primus Capital Partners, which invests in business services, health care and education. Most pledges range in size from $5 million to $10 million.