Pension funds in the US are continuing to make private equity fund commitments right up until the close of the year. One pension fund which has committed to two private equity funds in Q4 2011 is the Teachers’ Retirement System of Louisiana (TRSL). The USD 14.6 billion public pension fund has made two new commitments to private equity funds in December 2011, both of which are buyout funds focused on North America. One of those commitments is a USD 50 million commitment to Leonard Green & Partners’ latest fund, Green Equity Investors VI. School Employees’ Retirement System of Ohio is another US public pension fund looking to commit to private equity funds in the closing stages of 2011, also committing USD 50 million to Leonard Green & Partners’ sixth fund. The second commitment made by TRSL is a re-up with Platinum Equity, allocating USD 50 million to Platinum Equity Capital Partners Fund III, having also committed to Platinum Equity’s second fund.
Teachers’ Retirement System of Louisiana has a variety of private equity fund preferences ranging from venture and buyout funds to distressed debt and mezzanine vehicles. TRSL has increased its exposure to private equity from 12% of total assets in June 2011 to 13% in late October 2011. It is above its target allocation to the asset class of 10% of total assets.
In August 2011, TRSL announced that it would be committing USD 1 billion to alternative assets, which includes private equity, real estate and infrastructure-related strategies, over the 2012 fiscal year. The pension fund currently has a 28% allocation to alternative investments.
Preqin’s Investor Intelligence currently tracks 3,702 profiles of active investors in the private equity asset class, with 7.08% of those investors being public pension funds based in USA. Of those 262 US public pension funds, 161 are known to show an interest in buyout funds.
More information on institutional investors in private equity can be found on Preqin’s Investor Intelligence database.