Washington State commits $375 mln to private equity

  • $129 bln system commits to European megafund, microcap buyout fund
  • PE allocation 21 pct; target range 19-27 pct
  • Commitment proposals go to the full board Sept. 20

Washington State Investment Board’s private-markets committee recommended allocating $375 million to two PE funds, a European megafund and a microcap buyout fund.

The $129 billion system plans to commit up to $300 million to the pan-European KKR European Fund V, targeting €5 billion ($5.84 billion).

Investors have the option to invest in U.S. dollars or euros. Washington plans to invest in U.S. dollars.

The private-markets panel also recommended committing up to $75 million to Riverside Micro-Cap Fund V, a North American control buyout fund that closed on $1.2 billion in late August.

The board approved the commitments Sept. 13. The proposals will go before the full investment board on Sept. 20.

Washington State’s PE portfolio was valued at $20.7 billion as of March 31.

The retirement system has committed 53 percent of the PE portfolio to mega and large buyouts, 18.8 percent to small and midsized buyouts, 18.8 percent to venture capital and growth equity, 4.7 percent to distressed debt, 3.6 percent to co-investments and 1.1 percent to special situations and multistrategy investments.

The private-markets committee also recommended a $250 million farmlands investment, in its tangible-assets portfolio.

Action Item: Learn more about Washington State’s private-markets investments here https://bit.ly/2N9ZIYR