Two Midwest States Have Capacity For Pledges

Two limited partners in the heartland have a total of $300 million to commit to private equity over the next year.

The Teachers’ Retirement System of Oklahoma is looking to pledge $200 million to the asset class during the next 12 months, while the Nebraska Investment Council has room to commit $100 million through the same period.

Oklahoma has a target allocation to private equity of 5 percent, but its current level of commitments, $117.5 million, represents only about 1.5 percent of the $8 billion plan sponsor, according to Investment Associate Nick Pointer.

The investor hired Franklin Park last fall to manage a $400 million discretionary private equity account, which can include buyout and corporate restructuring, venture capital, mezzanine financing, special situations, and secondary vehicles.

Meanwhile, the $14 billion Nebraska Investment Council has a target allocation to private equity of 5 percent, with a range of 3 percent to 7 percent. Areas of interest include the energy sector, due to its “constant growth in demand and the continuing emphasis on energy efficiency,” as well as buyout funds, where it is currently underweighted, State Investment Officer Jeff States told Buyouts.

Nebraska’s private equity commitments total $518 million, $158 million of which has already been drawn down.