The New York State Teachers’ Retirement System (NYSTRS) recently added a $400 million slice of its more than $95 billion portfolio into new private equity partnerships, IMMP has learned.
According to Oct. 30-31 NYSTRS Board meeting materials, new private equity firm commitments include inked contracts with The Carlyle Group, Thoma Bravo, The Jordan Company and secondary private equity and co-investment fund firm Lexington Partners over the three-month period that ended Sept. 30.
New partnerships include up to $100 million each to the Carlyle Asia Partners IV and the Jordan Company’s Resolute Fund III. Also, approximately $150 million was awarded to the Lexington Emerging Partners Fund, and up to $20 million was distributed into the Thoma Bravo Special Opportunities Fund I.
All commitments were approved by Thomas Lee, the Executive Director & CIO of the Albany, N.Y.-based retirement system, the private equity activity report stated.
Also, pending due diligence, venture capital firm FirstMark Capital is slated to receive an up to $25 million investment within its FirstMark Capital III Fund. The quarterly update notes that the full transaction is slated to close next month.
Presently, the NYSTRS’ private equity portfolio has a market value of $7.4 billion.
In July, the systems Board disclosed that it was searching for private equity consulting/advisory services. According to the RFPs, the selected firm will assist the more than 427,000-member system with its private equity portfolio.
As of March 31, the NYSTRS’s long-term portfolio allocation included a 7% allocation to private equity.
NYSTRS spokesperson John Cardillo confirmed previously that “both RFPs were issued because the contracts in place are scheduled to end Jan. 31, 2014.”
“StepStone Group has served as NYSTRS’ private equity consultant since Feb. 1, 2008,” Cardillo said, while noting that “Callan Associates has been NYSTRS’ real estate consultant since February 1, 2005.”
A projected timeline within the procurement document notes that contracts may be awarded the week of Jan. 27, 2014, with a commencement date of March 1, 2014.
Updates regarding the private equity consultant search were not available as of IMMP’s press time.