The New York State Common Retirement Fund (NYSCRF) approved more than $38 million in capital commitments to China-focused investment funds in March, according to an investment report by Thomas P. DiNapoli, the state comptroller of the $248 billion pension fund.
The commitments were made through NYAI Co-Investment Fund III, a separately managed account.
In March, NYSCRF committed $3.3 million to 5Y Capital Evolution Fund II, and another $4.9 million to 5Y Capital Growth Fund I. 5Y Capital Evolution Fund II will make early-stage venture investments in China, while the latter will make investments in mid to late-stage venture opportunities in the market.
Last month, 5Y Capital, formerly known as Morningside Venture Capital, announced the final close of these dual currency funds at over $2 billion.
NYSCRF also made a $25 million commitment to Boyu Capital Fund V, a minority growth and growth buyout fund in China, and a $5 million commitment to Boyu Capital Growth Fund I, a growth vehicle launched in March 2021.
Private equity firm Boyu Capital had in March disclosed it was in the market for its fifth fund but its filing with the US Securities and Exchange Commission did not specify a target. According to a Reuters report in February, Boyu Capital Fund V will be the firm’s largest at about $6 billion.
Boyu Capital had closed its $3.6-billion fourth fund earlier this year.
Through NYAI Co-Investment Fund III, NYSCRF had earlier invested in other Asia-Pacific funds such as Pemba Capital Partners Fund II, DCP Capital Partners II, Loyal Valley Capital Advantage Fund III and MBK Partners Fund V, among others.
In March, the US pension system also committed $10 million to Viola Ventures VI, an early-stage venture capital fund, through the Hamilton Lane/NYSCRF Israel Fund, in addition to nearly $1.3 billion investments across fixed income, real estate and credit strategies, and its emerging manager programme.