Wisconsin sets co-investment target for 2015

Wisconsin, which launched its co-investment program last year, closed on five co-investments in 2014, according to a private equity report included in the materials. In the fourth quarter the $88.7 billion retirement system committed $10 million to a co-investment in a packaging company. Additional information about the co-investment was not available.

In related news Wisconsin made five fund commitments in the fourth quarter, including more than $200 million earmarked for investments in distressed debt and mezzanine. The retirement system’s largest commitment, of $100 million, went to Centerbridge Partners’s third flagship turnaround fund, a $6 billion vehicle that held a final close in October. 

Wisconsin allocated $50 million to Glendon Capital Management’s debut turnaround fund; the firm is a Barclays Asset Management Group spinout that was scheduled to hold a final close on $1 billion in December or January, according to Los Angeles County Employees Retirement Association documents. Glendon plans to invest in distressed securities across a variety of industries.

The retirement system also committed $75 million to Caltius Mezzanine, which is reportedly targeting $500 million for its fifth mezzanine fund.

In addition to commitments to debt-related funds, the retirement system committed $50 million to both Cressey & Company Fund V, a healthcare fund tagged for mid-market companies, and Sheridan Production Partners III-B, an oil and gas fund, according to its meeting materials.

Wisconsin had a 7.9 percent allocation to private equity and debt funds as of Dec. 31. The portfolio is valued at roughly $7 billion.