NY Teachers Pension Pumps $1.1B into Buyout, Real Estate Funds
The $142 billion New York State Teachers’ Retirement System expanded its private equity portfolio with multiple managers and a real estate investment, according to material released at the trustees’ July meeting.
Roughly $1.1 billion was allocated across six funds to its $13.7 billion private equity program. The commitments were distributed to existing managers and funds that specialize in buyouts: Phoenix 2022 Fund was awarded $95 million; Monomoy Capital Partners V, Tenex Capital Management IV, and JFL Fund each received $150 million; and Nautic XI saw a $300 million commitment.
Monomoy Capital Partners’ most recent buyout fund closed at $2.25 billion, with commitments from the Virginia Retirement System and the New Mexico State Investment Council. The strategy focuses on investing in middle-market manufacturing, distribution, and business services companies.
The Phoenix 2022 Fund is managed by Phoenix Equity Partners. The firm focuses on the growth end of the small-to-middle market buyouts. Tenex Capital Management’s strategy encompasses numerous sectors, with a recent emphasis on the diversified industrial sector. The fund has also recently received funds from the New Jersey Division of Investment for the state’s pension plan.
JFL Equity Investors VI is a value fund managed by J.F. Lehman & Co. that also focuses on small to middle market buyouts. The approach focuses on the defense, aerospace, and maritime industries and has obtained funding from other US pensions, notably Connecticut Retirement Plans and Trust Funds.
Nautic Partners’ latest fund focuses on middle-market control buyouts in the healthcare, industrial, and service sectors. Other investors in the fund include the Rhode Island Employees’ Retirement System ($40 million), the Merced County Employees’ Retirement Association, the Vermont Pension Investment Committee ($20 million), and the Texas County and District Retirement System ($120 million).
In real estate, there was a $300 million add-on commitment to the FCP Freddie Mac K Series Debt Separate Account. The account invests in subordinate loans with fixed or floating rates at loan-to-value ratios ranging from 60% to 65%.