PSERS commits $450m to private equity, debt

Among the commitments was a $100m allocation to Trilantic Capital Partner, which has hit the market for the first time since spinning out of Lehman Brothers.

The Pennsylvania Public School Employees’ Retirement System committed $450 million across two funds at its meeting last week, according to its website.

The $47.8 billion retirement system committed $100 million to Trilantic Capital Partners V, the firm’s first fund since spinning out of Lehman Brothers in 2009. Trilantic is targeting $2 billion with a $3 billion hard-cap, which it will invest in mid-market companies in the consumer, financial services, business services and energy sectors. 

The fund will target investments between $50 million and $200 million in size, with an emphasis on control or minority investments in North America. 

Evercore Group is a global placement agent on the fund, according to documents. 

PSERS has committed $236 million across the Trilantic team’s previous funds, which were raised while the firm was still with Lehman. Their last vehicle raised $2.6 billion in 2007 and was generating a 1.7x return multiple and 16.6 percent net internal rate of return, according to presentation documents made available on the retirement system’s website. 

In addition to Trilantic, PSERS also committed up to $350 million on Sankaty Advisor’s latest offering, which is targeting $3.5 billion for performing and distressed bank loans, high yield bonds, mezzanine and special situations. The firm, a credit affiliate of Bain Capital, will invest between 40 percent and 60 percent of the fund in global distressed securities, 20 to 30 percent in capital solutions and 20 to 30 percent in special situations, according to documents.

PSERS had a 15.1 percent allocation to private equity as of 31 December, which makes up the majority of its 20.4 percent overall allocation to private markets.