Pennsylvania PSERS Commits to Hg Capital, Lindsay Goldberg in Latest PE Moves 

The Pennsylvania Public School Employees’ Retirement System (PSERS) approved new private equity commitments during its June trustees meeting, selecting managers to support its long-term allocation strategy. The decisions were made following recommendations from investment consultant Aksia, which projects annual commitments of $1.4 billion to $2 billion by 2026 to meet the system’s target exposure. For 2025, PSERS is proposing a more measured commitment range of $700 million to $1 billion as it scales into its long-term pacing model. 

Trustees approved three allocations to Hg Capital totaling approximately $245 million. The system committed $100 million to Hg Saturn 4, €75 million (approximately $87 million) to Hg Genesis 11, and €50 million (about $58 million) to Hg Mercury 5. All three funds target European enterprise software and services, differentiated by market capitalization: Mercury focuses on the lower-mid market (enterprise values under €1 billion), Genesis on the mid-market (under €2 billion), and Saturn on the upper-mid market (over $1.5 billion). 

In addition, PSERS committed $100 million to Lindsay Goldberg VI, a fund targeting $4 billion in total capital. The strategy focuses on companies in the industrials, services, and healthcare sectors, with a geographic focus on North America and Western Europe. 

PSERS, which oversees $75 billion in total assets, has a 12% target allocation to private equity. However, its current private equity exposure stands at 16%, according to recent investment reports. The system’s private equity portfolio delivered a 5.17% return in 2024.