Wisconsin’s SWIB Commits $1.1B to PE, Credit, and Real Estate in Latest Allocation Wave
The State of Wisconsin Investment Board (SWIB), which oversees $171 billion including the Wisconsin Retirement System, continued its steady expansion into private markets with roughly $1.1 billion in new commitments during its October board meeting. The deployment follows an active second quarter, when the pension allocated $1.7 billion across private markets and hedge funds.
Within its $23 billion private equity portfolio, SWIB committed $613 million across funds and co-investments, alongside $425 million to credit strategies and co-investments. Software-focused buyout managers received the largest allocations: $100 million to JMI Equity Fund XII; $87 million to Hg Genesis 11; and $58 million to Hg Mercury 5—vehicles also backed by peers such as Connecticut Retirement Plans and the Teacher Retirement System of Texas.
Additional fund commitments included Radian Capital Partners IV ($32.5 million), Ridgemont Equity Partners V ($75 million), M5 Software Investment D1 ($30 million), G2 Software Investment D1 ($8 million), and add-ons to Activant IV ($10 million) and PSG Encore Warehouse ($8.7 million). Another $204 million in co-investments added exposure across consumer, IT, industrials, large buyouts, and energy.
Credit strategies attracted sizeable allocations as well, with $100 million each to CapitalSpring Investment Partners VII—focused on senior debt in foodservice and franchising—and Charlesbank Credit Fund IV, a U.S. middle-market subordinated debt and mezzanine vehicle. Additional commitments included Gemspring Growth Solutions II ($75 million) and NGP Royalty Partners III ($35 million), while credit co-investments totaled $115 million.
SWIB’s $12 billion real estate portfolio, diversified across core and non-core sectors, received a new $60 million allocation to the WESCO VII joint venture. The program returned 1.7% for the year ending Sept. 30 and has more than $300 million in additional U.S. real estate commitments in the pipeline. Overall, private equity and associated credit strategies now represent roughly 25% of SWIB’s total portfolio.