Wisconsin establishes guidelines for its private equity portfolio

Institution: State of Wisconsin Investment Board
Headquarters: Madison, US
AUM: $157.9 billion
Allocation to alternatives: 17.8%

State of Wisconsin Investment Board has outlined general guidelines for its private equity portfolio following the September board meetings, affiliate title Private Equity International reported.

Under the new general guidelines:

• The private equity portfolio shall not include investments in venture capital funds; commitment to VC funds will need to follow the venture capital investment guidelines.
• Investment may be made through funds, strategic partnerships or co-investments alongside funds with the same sponsor or manager.
• Aggregate exposure to any investments or manager must not exceed 10 percent of the private equity portfolio without the approval of the ED/CIO.
• The PE portfolio investments outside of the US should not exceed 45 percent. Moreover, no more than 20 percent of the portfolio may be invested in emerging markets.

Also in the meeting, SWIB disclosed over $1.1 billion-worth of private equity commitments. The commitments comprise:

• $200 million to Trident IX
• $200 million to Ashbridge Transformational Secondaries Fund II
• $150 million to SPC Wilson Point
• $100 million to Providence Strategic Growth V (PSG V)
• $100 million to PSG Encore Warehouse III
• $60 million to SkyKnight Capital Fund III
• $50 million apiece to Flexpoint Asset Opportunity Fund II, Anthos Capital V and FP Credit Partners II
• $40 million to Prairie Capital VII
• $35 million to New State Capital Partners Fund III
• $20 million add-on commitment to Percheron Capital Fund I
• $4 million to Shore Capital Partner‘s Business Services  Fund
• $3 million to the fund manager’s fourth dedicated Healthcare Fund

The current private equity allocation for the $157.9 billion US public pension stands at 11.3 percent, which falls in line with the policy target range of 8-14 percent. Illustrated below is SWIB’s private equity portfolio approval guidelines, investment portfolio and recent fund commitments.

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