PSERS’ board approved a USD 30 million commitment to Berkshire Fund VIII and a USD 20 million commitment to InSight Capital Partners VII. The former fund is a US-focused buyout vehicle while the latter will make venture capital investments in US-based software and internet technology companies. The commitments are re-ups, with PSERS having committed to both managers’ predecessor funds. This is in line with the pension fund’s strategy of only committing to funds managed by its existing managers as part of a gradual scaling back of its private equity activity. It intends to focus its private equity investment activity on the best performing managers with which it has a previous relationship. In 2009, the public pension fund indicated that it intended to increase its fixed income exposure in order to increase the liquidity of its portfolio due to an expected increase in benefit payouts as the pension fund matures. This will come at the expense of the most illiquid portion of its portfolio i.e. its private equity exposure. It has since revised its targeted allocation to private equity – it has 25.1% of its assets in private equity but expects to reduce that to 24.5% in the short term. In the longer term it aims to have only 15% of its assets in private equity.
More information on institutional investors in private equity can be found on Preqin’s Investor Intelligence database.