MA State Fund Increases Private Equity Holdings

June 5, 2008 ( - Massachusetts' $52.7 billion state pension fund has hired several fund managers and allocated more money to private equity funds.

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 ).