Firms & Funds

Wisconsin’s private equity portfolio jumps 17.2 percent, outpacing benchmark

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  • Pension fund’s private equity portfolio target allocation is 7 percent of total fund
  • State of Wisconsin Investment Board manages $86.5 billion in total
  • Diversified fund rises 13.5 percent in 2013, according to preliminary estimate

Overall, Wisconsin Investment Board’s $86.5 billion diversified core fund’s investments returned 13.5 percent for 2013, ahead of its 12.9 percent benchmark.

Private equity, which has a 7 percent targeted allocation in the fund, delivered a 17.2 percent return, ahead of its 16.3 percent benchmark, according to a spokeswoman for the retirement fund.

The pension fund’s real estate portfolio jumped 15.6 percent, exceeding its 13 percent benchmark. Public equities rose 26.2 percent, ahead of the 24.9 percent benchmark, and U.S. equities rose 32 percent, beating the 30 percent benchmark

Among its private equity commitments in 2013 and late 2012, Wisconsin tapped into EnCap Energy Capital Fund IX,  HgCapital 7 LP, Triton Fund IV, Advent International Global Private Equity VII LP, Apollo European Principal Finance Fund II LP, Clearlake Capital Partners III LP, FountainVest China Growth Capital Fund II LP and Wayzata Opportunities Fund III LP.

David Villa, chief investment officer for Wisconsin, is working to step up co-investments by the pension system to help reduce costs and increase net returns.