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.