Virginia Pension Commits $2.2B to High Profile Alts Funds 

The Virginia Retirement System (VRS), which oversees $105 billion in assets, has attracted a wave of high-profile private equity funding for its alternative assets program. 

VRS has committed $300 million to both GTCR Fund XIV and TA Associates’ Fund XV, as well as $217 million to CVC Capital Partners IX and $200 million to NGP Natural Resources X III. 

At €26 billion, CVC Capital Partners IX is the largest buyout fund ever, while TA Associates raised $16.5 billion for Fund XV earlier this summer. In May, GTCR reached a $11.5 billion hard cap final close for Fund XIV, its largest fund to date. 

NGP Natural Resources intends to raise up to $2.5 billion for Fund XIII, which will target upstream oil and gas projects in North America. In 2019, the firm raised $4.28 billion for its predecessor fund. 

The public pension fund also made changes to the $14 billion credit program. Oak Hill Advisors’ OHA Oak Hill Syndicated Loan, a fund of one, that invests in leveraged loans and high yield bonds. The commitment totaled $585 million. 

Other commitments announced at VRS’ most recent investment advisory committee meeting included $200 million for Global Infrastructure Partners V, a massive investment vehicle with a target value of up to $15 billion. 

LS Power Equity Advisors, a US power production and infrastructure investor, received a $200 million commitment for its Global Infrastructure Partners V, which is aiming for $2.5 billion with a $3 billion hard cap, and $125 million for LS Power Equity Partners V. 

VRS allocated $250 million to Aksia Totsumen, which is to be housed in the risk-based assets portfolio that currently totals $4 billion. The fund is expected to invest in convex and defensive strategies. 

On Wednesday, the pension system reported a 6.1 % return, net of fees, on its investment portfolio for fiscal year 2023. Its private equity program returned -0.7%, while its real assets program returned 1.7%.