New York TRS Adds More PE, RE
May 7, 2008
The $105 billion New York State Teachers' Retirement System (NYSTRS) has beefed up its holdings in private equity and real estate.
At its meeting last month, the board voted to commit up to $50 million in Caltius Partners IV, up to $175 in CS Strategic Partners IV, up to E50 million in Hutton Collins Capital Partners III and up to $75 million in ABRY Partners VI. The board also approved investments of up to $100 million each in Ares Corporate Opportunities Fund III, JLL Partners Fund VI, Madison Dearborn Capital Partners VI and Riverstone/Carlyle Global Energy and Power Fund IV. TPG Partners VI and Lexington Middle Market Investors II also received up to $150 million each.
On the real estate side, investments of up to $50 million each were approved for the Cabot Industrial Value Fund III and the Rockwood Capital Real Estate Fund VIII. The Westbrook Real Estate Fund VIII received up to $55 million.
NYSTRS recently hired StepStone Group to serve as its private equity consultant, said John Cardillo, spokesman for the plan. Callan Associates, NYSTRS general investment consultant, assists with other types of investments.
Lastly, the board also approved a year long contract extensions for real estate managers Adelante Capital Management, Cohen & Steers Capital Management and RREEF America.
Cardillo said that Adelante manages a $304.4 portfolio for the plan, while Cohen & Steers manages two separate mandates of $419.2 million account and $157.5 million. RREEF America oversees a $311.8 million account.
NYSTRS' target asset allocation is 51% domestic equity, 10% international equity, 8% real estate, 5% private equity, 18% domestic fixed-income and 8% mortgages, according to its Web site.
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