PA PSERS commits $650 mln to private equity

The system made massive investments to private equity funds where it has an existing relationship with

Pennsylvania Public School Employees’ Retirement System at its December meeting committed to private equity funds from Apax Partners, Clearlake Capital, Incline Equity Partners and Insight Partners, its website shows.

The system invested $150 million to Incline Equity Partners’ fifth fund, targeting $850 million, according to data from sister publication Private Equity International. Incline Equity makes control investments to companies in the middle market, according to its website.

PA PSERS’s backed previous Incline Equity funds, including PNC Equity Partners I, PNC Equity Partners II, Incline Equity Partners III and Incline Equity Partners IV, Buyouts reported. In May, PA PSERS committed $75 million to Incline’s Elevate Fund, which invests in the business services, specialized light manufacturing and distribution services in the low to middle market.

Pennsylvania invested $150 million to Apax Partners’ tenth fund, targeting $10.5 billion. Apax Fund X invests in the global technology, healthcare, consumer services, and telecommunications sectors, according to Buyouts.

In June, Washington State Investment Board also invested $350 million to Apax X, Buyouts previously reported.

PA PSERS also committed $150 million to Insight Partners’ Fund XI, targeting $7.25 billion. Insight’s eleventh fund, which focuses on the TMT sector in North America, Asia-Pacific and Western Europe, will invest $10 million to $150 million and make between 65 and 75 investments, according to Buyouts.

Pennsylvania Public School Employees’ Retirement System pledged $200 million to Clearlake Capital Partners VI, which is capped at $7 billion. Clearlake focuses on the tech-enabled, software, consumer, industrial and energy industries.

Another Pennsylvania pension, Pennsylvania State Employees’ Retirement System, committed a combined $150 million to Insight XI and Clearlake VI at its December meeting, Buyouts reported.

In August, PA PSERS approved $1 billion in investments throughout its asset classes.

As of Mar. 31, private markets makeup 14.6 percent of the system’s total portfolio.