Reuters reports that on Thursday trustees for the Pension Reserve Investment Trust voted to put $675 million into seven private equity funds. The Massachusetts fund is forecasting double-digit returns in this investment category for this year.
The funds that will receive pension assets include:
- Tanaska Power Fund II, Quantum Energy Partners V, TCW Crescent Mezzanine Partners V and Avenue Europe Special Situations fund ($100 million each);
- Onex Partners III ($150 million);
- American Securities Fund V ($75 million); and
- Thoma Bravo IX ($50 million).
Separately, according to Reuters, the trustees voted to allocate $450 million each to T. Rowe Price Group and Jennison Associates to invest in timber and natural resources portfolios, and voted to place $270 million each with Eaton Vance Corp and ING Investment Management to invest in bank loan funds.
The Massachusetts fund lost 1.53% this year, with U.S. stock investments posting a -6.43% return.
Private equity has been one of U.S. institutions’ best performing assets of the last 10 years (See PLANSPONSOR 2008 Ultimate Buyer’s Guide: Private Equity ).