The USD 129 billion NYSCRF has allocated USD 15 million to High Peaks Seed Venture Fund, through which it plans to invest in early stage and seed stage opportunities within New York. The announcement marked NYCRF's first commitment to a dedicated seed stage fund. The vehicle is administered by High Peaks Venture Partners, which is hoping to attract an additional USD 5-10 million from other investors to reach its USD 25 million target.
NYSCRF is the third-largest public pension plan in the US with more than one million members, retirees and beneficiaries from state and local governments. It typically invests with private equity general partners directly and through managed funds of funds arranged as separate accounts.
NYSCRF employs a broadly diversified strategy for private equity investments. Even though the majority of its private equity mandate is made up of US-based funds, the retirement fund invests in funds globally, including emerging markets. In terms of new fund investments, NYSCRF typically invests in buyout, venture and distressed debt vehicles but it would consider all fund types. Its target allocation to private equity is 10% of total assets and it is expected to stay the same in the long term.
NYSCRF has gradually increased its activity in private equity over the years, investing in both direct investment funds and through funds of funds. It also recently committed EUR 20 million to Gilde Buyout Fund IV, a mid-market buyout fund focused on Europe and managed by a firm with which the retirement fund has previously established a relationship.
More information on institutional investors in private equity can be found on Preqin’s Investor Intelligence Database database.