PSERS Commits To PE Funds

The Pennsylvania State Employees’ Retirement System (PSERS) made commitments to two private equity funds and began the process of reviewing its five-year investment plan. The $22.5 billion public pension fund will invest up to $50 million in New Enterprise Associates’ $1 billion Fund XI. PSERS is a longtime investor with the Baltimore-based early-stage venture capital firm. It first invested in NEA VI, a $230 million fund closed in 1993.

The pension fund has also allocated funds to Oaktree Capital Management. The Los Angeles-based buyout shop closed an $808 million mezzanine debt fund in December. PSERS began investing with the firm in 1996.

The pension’s investment board approved both commitments at its monthly meeting last Wednesday.

The board also got its first glance at an asset-liability study and an annual five-year investment plan prepared by the plan’s general consultant, Rocaton Investment Advisors.

Neither of those documents has been made available for public consumption. PSERS’ board will likely approve both at its December meeting. Almost 20% of the pension fund’s capital sits in alternative investments, an asset class that includes private equity, real estate and direct investments.