US pension fund CalSTRS allocates $2.2b to PE managers in H2

Los Angeles, California. Photo: Olenka Kotyk/Unsplash

US pension fund California State Teachers’ Retirement System (CalSTRS) committed a total of $2.2 billion to private equity managers in the second half of last year ended 30 September, bringing its total for 2019 to $7.6 billion.

According to its latest private equity investment report, the second half commitment included the $1.6 billion approved during the fourth quarter, increasing its exposure to PE to 9.5 per cent from 9.3 per cent in March last year.

The pension fund’s overall PE program is slightly above the current target of 9 per cent but still below the long-term target exposure of 13 per cent.

“Private equity remains, and is expected to remain, an important return driver for CalSTRS,” the pension fund said. The PE program experienced net contributions of $500 million combined over the last two quarters of 2019.

The pension fund said its PE program has regularly committed across several vehicles offered by the managers mentioned, including select co-investments. In several cases, the commitments are managed by separate teams with the manager and executive on different strategies.

The semi-annual performance report also showed that that the pension fund continues to commit across several vehicles offered by its largest managers – Blackstone Group, which accounts for the pension fund’s 11.6 per cent exposure, Carlyle Group (4.3 per cent), Permira (3.8 per cent), TPG Capital (3.8 per cent), and Summit Partners (2.9 per cent).

Specifically, from June to September 30, CalSTRS’s PE program approved capital commitments to Advent Global Technology Fund, Apax X, Francisco Partners Credit I, AlpInvest SSMA, TA Select Opportunities, Cortex VII, RRJ IV, ICG Strategy Equity, Blackstone Life Sciences V, and MBK Partners V, the fifth buyout fund of North Asia-focused private equity firm MBK Partners.

MBK Partners is targeting as much as $6 billion for the fifth buyout fund, with plans to reach the final close by the second half of this year. The predecessor fund, launched in 2016, closed with $4.1 billion in commitments. CalSTRS committed $200 million to the fund.

The CalSTRS reported also showed that about three-quarters of commitments completed in the second half were made in buyouts, including US/North America, global, and Asia-focused strategies, the fund said.

CalSTRS began investing in the PE asset class in 1998. As of September 30, it had 458 investments in the active portfolio and 163 investments in the exited portfolio. The total value of the portfolio was $22.9 billion, with total exposure, including unfunded commitments, of 42.5 billion.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.