PennSERS Adds $100M to Private Equity, Taps NEPC for Real Estate

The Pennsylvania State Employees’ Retirement System (PennSERS) approved two new private equity commitments and tapped a new consultant at its monthly board meeting this week.

The moves follow the $34 billion pension fund’s hire of private equity firm Hellman & Friedman late last year.

The board approved a $75 million commitment to KPS Capital Partners‘ KPS Special Situations Fund VI and another $25 million to KPS Special Situations Mid-Cap Fund II. Both were follow-on investments within private equity, which totals $6.6 billion or roughly 19% of the overall investment portfolio as of the end of March.

“The manager has a long track record of strong performance,” explained PennSERS CIO James Nolan regarding the additional assets going to KPS. “The commitment helps the fund consolidate capital with high-performing existing managers.”

In addition, the board hired Boston-based NEPC as its real estate investment consultant. The firm will have a five-year contract that follows on from the current contract that expires on December 1. PennSERS has roughly $3 billion in real estate, as of the end of the first quarter 2023.