PA PSERS backs credit and PE funds from Bain, Incline Equity, Hahn & Co.

Pennsylvania Public School Employees’ Retirement System approved $425 million in private equity and private credit commitments, documents from its May meeting show.

The board committed $75 million to Incline Equity Partners’ Elevate Fund, targeting $300 million. The pool focuses on the lower-middle market and invests in distribution services, business services and specialized light manufacturing sectors.

PA PSERS previously committed to Incline, having invested in PNC Equity Partners I, PNC Equity Partners II, Incline Equity Partners III and Incline Equity Partners IV.

Pennsylvania pledged a combined $150 million to Hahn & Co III and III-S funds, both of which are targeting $2.5 billion. Hahn focuses on buyouts and corporate restructuring in South Korea, its website says.

The system also committed up to $200 million to Bain Capital Credit’s Distressed and Special Situations 2019 fund, targeting $3 billion.

Pennsylvania PSERS invested in six funds managed by Bain Capital totaling $2.05 billion as of Dec. 31, 2018. Bain makes up PA PSERS’s largest total exposure in its private credit portfolio.