New York pension fund commits $64m to two Chinese PE funds

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The New York State Common Retirement Fund (NYSCRF) made a capital commitment of $64.8 million in total to two Chinese private equity funds in December 2018, according to a monthly transaction report.

It allocated $39.85 million to Boyu Capital’s fourth USD-denominated fund, Boyu Capital Fund IV. According to Reuters, the PE firm is seeking at least $3 billion for the fund that would be its largest to date. The fund size has not been disclosed by the PE firm.

Boyu’s last USD fund raised about $2.1 billion in 2016 and saw a 37.5 per cent gross internal rate of return as of the end of June 2018, said the Reuters report. The Hong Kong-based firm’s first two USD funds, which raised about $1 billion and $1.6 billion, are fully invested and had net IRRs of about 35 per cent and 40 per cent.

Meanwhile, NYSCRF also committed $25 million to CDH Investments’ sixth China Fund, CDH Fund VI. DEALSTREETASIA had earlier reported that the Chinese firm mopped up over $1 billion in commitments for the fund, which aims to make investments in consumer, healthcare, financial services and other growth sectors.

CDH Fund VI has a hard cap of $2.5 billion and is expected to make a final close by the second quarter of this year. The fund’s predecessor, CDH Fund V, was closed at $2.5 billion in 2014, with backing from LPs including Texas County and District Retirement System.

NYSCRF is an existing backer of both firms. The pension fund also made a $500-million commitment to Blackstone’s latest commingled real estate fund, Blackstone Real Estate Partners IX.

On top of that, it also committed $300 million to KKR’s Global Impact Fund, which will invest across five impact verticles aligned with the UN’s Sustainable Development Goals. The recently-formed unit by the private equity major will seek investments in small and medium-sized companies focusing on areas such as renewable energy, education and environmental management, according to a Reuters report.

NYSCRF also put in $150 million in TSSP Opportunities Partners IV, which is private equity major TPG’s latest opportunistic credit fund, with an aim to raise $3 billion to invest in distressed assets.

Pension funds’ growing Asia allocations

Western pension funds are increasingly looking to hedge their capital with Asia-focused vehicles.

In January, the Los Angeles City Employees’ Retirement System committed $25 million to Hong Kong-based Baring Private Equity Asia’s seventh Asia-focused vehicle. The $5.5-billion Baring Asia Fund VIII has also received allocations from other US pension funds, including Texas Employees Retirement System ($15 million), Los Angeles Fire & Police Pension System ($25 million) and Rhode Island State Investment Commission.

Recently, San Francisco Employee’s Retirement System committed $40 million to China-based venture capital firm Lilly Asia Ventures’ fifth biosciences fund. The same fund is also backed by Los Angeles County Employee’s Retirement Association, which committed $100 million this January.

Another Chinese VC firm, ClearVue Capital, also recently received $200 million worth of commitments for its third fund, ClearVue Partners III, from the $75-billion Oregon Public Employees Retirement Fund. Shanghai-based ClearVue is currently on the road to raise $600 million for its latest fund.

Also Read:

Exclusive: CDH Investments mops up over $1b for sixth China fund

Chinese PE firm Boyu Capital said to seek at least $3b for new fund

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.