PA SERS pledges over $200 mln across three PE funds

  • Assets under management: $28.8 bln
  • PE target: 16 pct
  • Actual PE commitment: $3.9 bln, or 13.7 pct
  • Why is this important: PA SERS is investing in North American, European and Chinese markets

Pennsylvania State Employees’ Retirement System at its February meeting committed $225 million to private equity funds targeting North American, European and Chinese markets.

The system committed $75 million to the third fund of Primavera Capital Group, the Chinese investment firm focused on PE and cross-border investments.

PA SERS committed $75 million to Providence Equity’s fourth strategic growth fund, which focuses on lower-middle-market software and technology-enabled businesses in North America and Europe, targeting $1.75 billion.

The system also committed $75 million to Clearlake Opportunities Partners II, which invests in structured and distressed equity, as well as opportunistic credit investments for middle-market companies in North America. Clearlake last year closed its fifth flagship fund on more than $3.6 billion.

PA SERS generated a 1.6 percent private equity return in Q4. PE was the strongest performer for the system, which saw low returns in cash, fixed income and real estate, and losses in multistrategy and global public equity, according to a news release.