The USD 29.8 billion public pension fund has continued to increase its young but expanding private equity portfolio with two commitments of USD 40 million to two distressed debt vehicles. The vehicles in question are OCM Opportunities Fund VIII and OCM Opportunities Fund VIIIB, managed by California-based Oaktree Capital Management. Both vehicles will focus on opportunities within the US. Tennessee Consolidated Retirement System was advised on these investments by Strategic Investment Solutions, its incumbent general consultant who is monitoring the retirement system’s private equity portfolio whilst TCRS searches for a full time private equity consultant.
TCRS has only been investing in private equity since 2009, after receiving approval from the Tennessee General Assembly in 2008 to invest up to 5 percent of the pension fund in private equity.
TCRS has set a strategic target allocation of 3% to private equity, almost USD 900 million. It will continue to build up its private equity portfolio in the coming years to move closer to this figure. By April 2010, TCRS had made commitments totalling USD 299 million to private equity funds, though only a very small proportion of these commitments had been called.
Other early private equity investments made by Tennessee Consolidated Retirement System include commitments to Draper Fisher Jurvetson X, Hellman & Friedman VII, Khosla Ventures III and TA XI. These represent investment across a range of fund types include early stage, expansion, distressed debt and buyout.
More information on pension funds and other private equity investors can be found on Preqin's Investor Intelligence database.