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Pennsylvania pension makes $130m in commitments

The $34 billion Pennsylvania State Employees’ Retirement System announces four new private equity and real estate commitments. The pension plan, which represents more than 215,000 members, has now reached its target allocation for the two asset classes.

Pennsylvania State Employees’ Retirement System (PA SERS) has approved four new commitments to private equity and real estate funds totaling $130 million (€83 million).

The $34 billion pension plan has committed $25 million to Prudential Real Estate Investor’s Senior Housing Partners Fund IV, which is targeting the senior housing and assisted living sector.

PA SERS board, meeting yesterday, also approved commitments of up to $15 million in Lightspeed Venture Partners VIII; up to $40 million in Sankaty Credit Opportunities IV and up to $50 million in TPG Partners VI. TPG’s latest vehicle is targeting up to $20 billion in commitments, according to recent reports, and expects to invest between $250 million and $1 billion of equity in operating companies with market valuations of $300 million or more.

A PA SERS spokesman told PERE the pension fund had reached its target allocations for private equity and real estate, at 14 percent and eight percent respectively. “We have been in this space for a long time and some of the funds we invested in eight to 10 years ago are now maturing,” he said. “We are reinvesting that capital to maintain our allocation levels.”