In a significant move to bolster their investment portfolios, the New Mexico State Investment Council (NMSIC) and the New York State Teachers’ Retirement System (NYSTRS) have committed substantial funds to private equity. NMSIC has allocated $85 million to various private equity funds, while NYSTRS has made a more considerable commitment of $350 million, reflecting a growing trend among institutional investors to diversify their assets in this sector.
Key Takeaways
NMSIC commits $85 million to private equity funds.
NYSTRS invests $350 million, exceeding its target allocation.
Investments focus on healthcare and energy sectors.
NMSIC's Commitment to Private Equity
The New Mexico State Investment Council has approved a commitment of $85 million to several private equity funds. This decision is part of NMSIC's strategy to enhance its investment portfolio and capitalize on the potential returns offered by private equity.
The funds receiving investments from NMSIC include:
The Column Group
Antler
Anzu Partners
These funds are expected to leverage their expertise in various sectors, providing NMSIC with opportunities for growth and diversification.
NYSTRS's Strategic Investment
On the other hand, the New York State Teachers’ Retirement System has made a notable commitment of $350 million to private equity. This investment is divided into two main allocations:
$150 million to OIC Structured Equity Fund I
$200 million to Linden Capital Partners VI
Focus Areas of NYSTRS Investments
OIC Structured Equity Fund I: This fund targets the energy, oil, and gas sectors in North America, specifically focusing on the U.S. market.
Linden Capital Partners VI: A healthcare-focused buyout fund, Linden Capital Partners VI aims for a target size of $4.5 billion, building on the success of its predecessor, which closed at $2.5 billion.
Implications for the Private Equity Landscape
The commitments from both NMSIC and NYSTRS highlight a broader trend among institutional investors to increase their allocations to private equity. With NYSTRS now holding a 9.6% allocation to private equity, surpassing its target of 9%, it underscores the growing confidence in the sector's potential for high returns.
Conclusion
The significant investments by NMSIC and NYSTRS into private equity not only reflect their commitment to diversifying their portfolios but also signal a robust interest in sectors like healthcare and energy. As these funds seek to capitalize on market opportunities, the implications for the private equity landscape could be profound, potentially leading to increased competition and innovation within the industry.
Sources
NMSIC approves commitments to PE funds | Private Equity International, Private Equity International.
NYSTRS commits $350m to private equity | Private Equity International, Private Equity International.