by Cameron Nicol, Senior Marketing Manager – eVestment Private Markets
Derived from the most viewed documents by our users of the eVestment Private Markets Platform, we have highlighted the top news and activity from North American public pension plans across their private markets programs.
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1. Employees Retirement System of Texas (ERS) – Private Real Estate Portfolio Annual Tactical Plan, FY2020
- Effective May 23 2019, ERS targets $650 million in new commitments for FY2020.
- Commitments will be comprised of $100m Core and $550m Non-Core, targeting between 0-2 and 4-12 investments for each strategy, respectively.
- Current market value of Private Real Estate portfolio is $2.1 billion, or 7.4% of the System’s assets. This is below interim target allocation of 8% and the long-term target of 9.0% by 2021.
- ERS’ consultant Meketa highlight the System should continue to pay attention to “certain highly selective, non-core strategies that may be more recession resistant than traditional core investing,” commenting on the higher likelihood of an economic recession happening today than at many other points since the GFC.
2. Public Safety Personnel Retirement System of Arizona – Private Fund Co-Investment Overview
- PSPRS Staff outlined the current state of the Plan’s co-investment portfolio, which has been running since 2006.
- Since inception, $400 million has been invested in co-investments across Credit, Private Equity, Real Estate and Real Assets.
- The program has produced a net IRR of 12.2% and 1.5x multiple.
- For private equity, $258 million has been committed out of a total $673 million allocation, suggesting continued appetite from PSPRS for co-investments.
3. Vermont Pension Investment Committee (VPIC) – Private Credit Strategic Investment Plan
- VPIC’s private credit program, advised by NEPC, is nascent, having only begun in 2017 and holding a target allocation of 5.0%.
- NEPC recommend VPIC should consider a $75m allocation for 2019 and 2020, scaling to $90 million in 2020 and beyond.
- VPIC’s commitments to date have been fulfilled through relationships with two private debt managers.
- NEPC advises VPIC to prepare for distressed cycles with “commitments to control-/influence-orientated manages with flexible mandates” and to seek special situations and credit opportunity strategies predicated on flexibility, value and complexity. NEPC’s outlook is positive towards Distressed Debt and Opportunistic Credit, with neutral views on US and European Direct Lending Strategies.