Public pension funds in the US continue to show a strong appetite for private equity commitments in H1 2012. One pension fund which has approved USD 85 million of commitments recently is Ohio Police and Fire Pension Fund (OP&F). The investment committee for the USD 12.5 billion public pension fund unanimously approved four new commitments to private equity funds in March 2012. The first of these is a USD 30 million commitment to Coller International Partners VI fund, focusing on secondary transactions in North America and Europe. A commitment of USD 25 million to Harvest Partners VI fund focusing on buyout and growth capital investments in mid market companies based in North America was also approved. A further USD 10 million will be invested in Northgate V, a fund of funds vehicle which will enable the pension fund to gain increased exposure to the asset class on a global scale, including emerging markets. The pension plan will also invest USD 20 million to another Northgate Capital fund of funds vehicle, Venture Partners VI, which will focus on top-performing venture capital funds in the US and other developed markets.
In January 2012, OP&F announced that it would be looking to commit USD 200 million to private equity funds over the course of the 2012 fiscal year. The pension fund currently has 4% of total assets allocated to private equity, with a long-term target allocation of 10%. Ohio Police and Fire Pension Fund has a variety of private equity fund preferences ranging from venture and buyout funds to distressed debt, fund of funds, natural resources and timber vehicles.
Preqin’s Investor Intelligence currently tracks 485 public pension funds that actively invest in the private equity asset class, of which 267 are based in the US. With approximately USD 500 million currently allocated to private equity, OP&F has the fourth largest allocation to the asset class of all seven Ohio-based public pension funds currently tracked on Investor Intelligence