Arizona State Retirement System (ASRS) recently decided to increase its private equity target allocation by two percentage points, taking it up to 7%, with a policy range of 5-9% of assets. The system approved a proposal to increase the target allocation to private equity following the publication of the results of an asset allocation study in October. ASRS, which currently has approximately 1% of its portfolio invested in private equity funds, undertook the study with the aid of investment consultant New England Pension Consultants (NEPC). It has been particularly interested in gaining exposure to small-mid market buyout, mezzanine and secondaries opportunities in 2009 while, with the help of NEPC, the retirement system is researching the possible future potential of energy and cleantech private equity funds.
North Carolina Department of State Treasurer has also recently indicated a desire to enhance its exposure to private equity by launching the Innovation Fund. The treasury department, which manages North Carolina’s $66 billion state retirement system, established the fund as part of its private equity programme last month in order to channel capital into “investment opportunities with significant operations in North Carolina.” The Innovation Fund has the capabilities to commit up to $250 million over the next 3-5 years and will add to the state treasurer’s private equity portfolio, which is currently approximately $3 billion in size. The selection of one or more private equity firms to manage the Innovation Fund is due to occur on 8th December following the issuance of an RFP, which sought responses from managers with experience of investing in companies within North Carolina and total assets under management of at least $1 billion.
For more information on institutional investors in private equity, please see Preqin’s Investor Intelligence database.