New York State Common Retirement Fund (NYSCRF), the third-largest public pension plan in the US, committed $15 million to the third dollar-denominated fund of Beijing-based mid-market private equity firm Hosen Capital, according to the pension fund’s latest disclosure.
The pension fund, which invests in PE partnerships directly and through separately managed accounts, said it made the commitment in Hosen III, the Chinese PE firm’s biggest fund, in December. Hosen is an existing relationship for NYSCRF.
The Chinese private equity firm is raising as much as $1 billion for its third dollar-denominated fund, which seeks to buy stakes in Asian food producers, in line with Hosen’s strong focus on the food space. It is looking for targets in the region, including in Japan, South Korea, and Taiwan.
Founded in March 2010 with offices in Shanghai, Shenzhen, and Chengdu, Hosen Capital already manages a $130-million and a $460-million fund. It also has yuan-denominated funds totaling $446 million.
The fund also received a $27-million commitment from DEG, the investment arm of German state-owned development bank KFW, late last year.
NYSCRF, which is widely regarded as one of best-managed and best-funded pension plans in the US, has been actively investing in Asian funds, especially in the private equity space.
In November, it committed a total of $505 million to Asia-focused PE and opportunistic funds, including $65 million to MBK Partners Fund V, the fifth buyout fund of North Asia-focused PE firm MBK Partners.
It also committed $20 million to Polaris “Jewel” Capital Fund V, managed by Tokyo-based Polaris Capital Group. The private equity firm invests in middle-market and large buyout transactions in Japan.
Additionally, NYSCRF allocated $400 million to SSG Capital Partners‘s fifth flagship fund – SSG Capital Partners V – and its sidecar fund. The fund invests principally in special situations and distressed investments in the Asia-Pacific region, with a focus on China, India, and Southeast Asia.
Early in 2019, the US pension fund committed $250 million to private equity major CVC Capital Partners’s fifth Asia fund. CVC Capital is looking to raise up to $5 billion for fund V, the largest-ever fund raised by the firm. In 2018, NYSCRF committed $500 million two funds managed by Asia Alternatives Management, one of the largest independent Asian private equity fund-of-funds based in Hong Kong.
NYSCRF manages the retirement security of the more than one million members of the New York State and Local Retirement Systems. As a long-term investor, the fund has an investment approach that capitalises on market opportunities and weathers market ups and downs.