Massachusetts pension outlines PE strategy changes

Changes include increasing target allocation to private equity within PRIT, raising co-investment capacity to 20% of annual fund commitments, and committing $1.4-2bn to funds.

PRIT has invested 10.8% of its portfolio in private equity as of June 2018, versus a target allocation of 12%.

Other plans include sourcing new managers to PRIM in target markets, exploring partnerships with third parties, and hiring new investment professionals. 

PRIT has invested 22% of its private equity portfolio in western Europe, 73% in the US, and 5% in other regions. Its private equity portfolio includes investments in venture capital (15%), growth equity (11%) and buyouts.

Information technology (34%), consumer discretionary (16%), healthcare (16%) and industrials (13%) are the sectors that dominate PRIT's private equity portfolio.

PRIT has generated a 21.8% one-year return from its private equity portfolio as of June 2018.

PRIM is responsible for the general supervision of PRIT, which is a pooled investment fund established to invest the assets of the Massachusetts State Teachers' and Employees' Retirement Systems, along with other retirement systems that choose to invest in it.

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