Pension systems rarely pull commitments to funds that have received preliminary approval. Generally, such reversals happen amid a breakdown in negotiations over fund terms, which occur after a recommended commitment.
Systems like Pennsylvania’s teacher pension have also pulled commitments during market downturns.
A spokesperson for the $75.8 billion system said investment staff withdrew its request for a vote on the potential commitment to Insight Partners XIII before the December 15 meeting of its full board of trustees.
The proposed commitment was on the agenda for the system’s investment committee meeting held on December 7.
According to the spokesperson for PA Teachers, the proposed commitment size consisted of $80 million for the fund with the option for another $50 million in possible future investments.
The spokesperson for PA Teachers declined to comment on the pulled commitment.
PA Teachers approved up to $150 million to Insight Partners XII and $50 million to a possible follow-on vehicle in August 2021, according to board documents. Before that decision, PA Teachers committed $444 million across three other Insight Partners funds and two co-investments.
Insight Partners announced it raised $20 billion for its twelfth flagship fund in February.
Insight Partners XIII launched in August, according to its Form D filed with the SEC.
The manager describes itself as a global software investor. Investments touted on its website include Twitter, Shopify, HelloFresh, DocuSign and Calm.
Insight Partners did not respond to questions seeking comment by press time.
In 2014, Pennsylvania’s teachers’ pension canceled a commitment to Centerbridge Partners third flagship fund after term negotiations broke down, Buyouts reported at the time.
Update: This report has been updated to include the commitment amount PA Teachers was considering.