US pension fund California State Teachers’ Retirement System (CalSTRS) has made $510-million in private equity, venture capital, and co-investment commitments to Asia-focused funds in the second half of 2018, according to the fund’s semi-annual report.
The commitment to Asia-focused funds was part of the total commitment of $4.07 billion that CalSTRS made in PE, co-investments, and one diversified secondary co-investment in the six months ended December 31, 2018.
According to the document, CalSTRS committed $60 million to GGV VII/GGV VII Plus, a venture capital fund investing in a range of technology sectors in both the US and China.
It also invested $20 million to GGV Discovery II, another VC fund that primarily invests in seed and Series A rounds of companies in GGV’s core sectors.
PAG III, the buyout and structured transaction fund targeting five industry sectors – consumer and retail, business products and services, financial services, technology, media and entertainment, and healthcare – also received a commitment of $250 million from CalSTRS.
The pension fund also committed $150 million to TPG Asia VII, the growth-oriented buyout fund focusing on financial services, healthcare, and consumer industries in the Asia-Pacific region.
Additionally, CalSTRS committed $30 million to PAGAC Galileo Holding I LP, a co-investment fund sponsored by PAG.
Overall, Its biggest investments in the second half of last year were in Blackstone Tactical Opportunities II and Ardian Fund VIII, which both received $500 million in commitments.
During all of 2018, CalSTRS made $7 billion in PE commitments, compared to $7.5 billion a year earlier.
As of December 31, 2018, CalSTRS’s PE allocation was at 9.2 per cent of its total portfolio. It aims to increase the allocation to 13 per cent in the long term.