LPs

Oklahoma Teachers ups 2024 private equity commitment pacing

The system plans to commit to Franklin Park’s latest co-investment fund.

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Oklahoma Teachers’ Retirement System plans to commit $375 million to private equity funds this year, which is more than 50 percent higher than the amount it committed to 2023 vintage year funds.

Many LPs remain constrained in their commitment pacing from overallocation or a lack of liquidity due to a slowed exit market. But allocators with mature, cashflow positive portfolios may find themselves able to increase allocations to new funds to take advantage of the sluggish fundraising environment.

Buyouts reviewed a January 24 presentation from private equity consultant Franklin Park at the $21.7 billion system’s board meeting.

Oklahoma Teachers is eyeing $375 million in commitments across 10 funds in 2024. Last year, the system committed $245 million to six funds.

The private equity portfolio has generated $2.17 billion in distributions against $1.89 billion in contributions since the program’s inception in 2007, according to the presentation. The portfolio still holds more than $1.5 billion in unrealized value.

Oklahoma Teachers plans to commit to seven buyouts funds and three Franklin Park vehicles, the presentation said.

The system is looking to commit $60 million to Franklin Park Co-Investment VI and a total of $80 million to two of its venture capital funds.

Franklin Park raised $135 million for Fund VI as of March 2023, according to SEC documents. No target is known for Franklin Park Co-Investment VI.

Arkansas Teacher Retirement System committed $65 million to Fund VI last year, according to Buyouts’ database.

Franklin Park has already committed $97 million to 10 co-investment opportunities through Fund VI, the presentation said.

Franklin Park’s fifth co-investment fund closed in 2021 at over $330 million, according to its presentation. To date, it has invested next to 21 sponsors across 32 portfolio companies through the fifth fund.

Oklahoma Teachers allocates 8.4 percent of its total fund to private equity, in line with its 8 percent target, according to board documents.