Preqin’s Investor Intelligence database currently tracks 253 US-based public pension funds, with an aggregate c. USD 250bn allocated to private equity. A number of US public pension funds made commitments to EIG Global Energy Partners’ mezzanine fund, EIG Energy Fund XV, which held a final close in May 2011 on USD 4.1 billion, significantly higher than its original target size of USD 2.5 billion.
Anne Arundel County Retirement System, which has previously invested in mezzanine and fund of funds vehicles, committed USD 10 million to the fund. Missouri State Employees' Retirement System also made a commitment, pledging USD 50 million; the USD 7.8 billion public pension fund currently has 10.1% of total assets allocated to private equity and holds a diverse portfolio of investments.
Louisiana State Employees' Retirement System, which is currently at its 12% target allocation to the asset class, committed USD 40 million to the fund and State of Connecticut Retirement Plans and Trust Funds also committed USD 60 million to EIG Energy Fund XV. The pension plan invests in a variety of fund types which includes investments in venture, buyout, mezzanine and fund of funds vehicles.
Preqin’s data shows that US public pension funds remain active investors in the private equity asset class. A number of pension funds have already committed to private equity funds during 2011, with many more looking to continue making investments over the coming 12 months.