NYSTRS places $83m with Abry mezz, preferred equity fund

The New York state pension also has a $6.7bn real estate debt portfolio.

New York State Teachers’ Retirement System (NYSTRS) has completed an $83 million commitment to latest Abry Partners mezzanine debt and preferred equity fund, according to Private Debt Investor’s sister publication Private Equity International.

The public pension fund finalised an $83 million commitment to ABRY Senior Equity V approved on 19 January, according to NYSTRS’ materials for the 25 January investment committee meeting. A NYSTRS spokesman confirmed the commitment.

NYSTRS also made a $100 million commitment to the Abry Senior Equity IV fund. The pension fund has invested in other Abry vehicles , including a $75 million commitment to the $1.5 billion senior debt Abry Advanced Securities Fund III, PDI data shows.

ABRY Senior Equity Fund V focuses on growth-oriented, mid-market companies in media, communications and business services headquartered primarily in North America, according to the meeting materials.

The Boston-based alternative lender disclosed the launch of the fund with a target of $1.05 billion last November, as PDI previously reported. Other pensions to commit to the Senior Equity V Fund include the Illinois Municipal Retirement Fund ($25 million) and Virginia Retirement System ($26.4 million).

That $1.05 billion target is an increase from the $950 million Abry raised for the Senior Equity IV fund in 2012.

On top of equity and bonds, NYSTRS also invests in real estate debt, with the fund’s total real estate debt portfolio reaching $6.7 billion by 30 September, according to the meeting document.

Last year, the pension made three significant commitments to real estate debt funds – a $500 million commitment to Blackstone Real Estate Debt Separate Account, $100 million to Lone Star Fund X, and $100 million to Brookfield Real Estate Finance Fund V, PDI data also shows.