NY State Retirement Allocates $850M Across Private Markets
The New York State Common Retirement Fund (NYSCRF) added $850 million to its private markets’ portfolio in October through an existing manager and the addition of two new managers, according to recently released documents.
A $250 million mandate was assigned to Summit Partners’ most recent private equity fund, which is a new partnership for the $275 billion NYSCRF. The firm’s flagship strategy, Summit Growth Equity Fund XII, focuses on investments in the technology, healthcare and life sciences, and growth products and services sectors. The Minnesota State Board of Investment and the Illinois Municipal Retirement Fund are two other fund investors.
Clearlake Capital Group, a current manager in the program, received a $300 million commitment to Clearlake Capital Partners VIII. The fund exclusively invests in the technological, industrial, and consumer sectors. Officials said that investment will be predominantly in North America. Additional investors comprise CPP Investments and the Connecticut Retirement Plans and Trust Funds.
In private credit, the retirement fund allocated $300 million to a fund of one co-investment sidecar vehicle managed by WPCS Manager. The WPCS FF EXCELSIOR offering invests alongside the Warburg Pincus Capital Solutions Founders Fund.
“While investors continue to face uncertainty, steady economic growth has continued this year, bolstering markets in the second quarter,” New York State Comptroller Thomas DiNapoli said last month about the pension’s investment pool. “Our diverse portfolio is built on long-term sustainable investments that can weather the market’s ups and downs and is one of the reasons we remain one of the nation’s strongest public pension funds.”
In the third quarter, the system returned 4.15%. Private equity investments account for 14.45% of assets, while real estate and real assets comprise 13.32% and credit, absolute return strategies, and opportunistic alternatives total 8% of the overall portfolio.