Indiana buys $11m in secondaries LP interests(3)

The public US pension, which last reported assets valued at $16bn, decided to look for purchases on the secondaries market because ‘sellers were looking to sell high quality allocations at deep discounts’.

The Indiana Public Employees’ Retirement Fund has made $10.8 million in secondary purchases of fund interests from oil and gas-focused private equity firm EnCap Investments.

The pension, which reported assets of $15.7 billion last June, bought interests from EnCap Energy Capital Fund V, EnCap Energy Capital Fund V-B, EnCap Energy Capital Fund VI, EnCap Energy Capital Fund VI-B, EnCap Energy Capital Fund VII and EnCap Energy Capital Fund VII-B.

A spokesman for the pension declined to say from where Indiana purchased the fund interests.

“The secondary market was never really attractive to us until recently, when sellers were looking to sell high quality allocations at deep discounts,” the spokesman said.

Indiana also made a $50 million commitment to Seoul, South Korean-based MBK Partners Fund II, an Asia-focused buyout fund targeting $3 billion. Last year, MBK entered a strategic partnership with the National Pension Service to explore investment opportunities in Korea. MBK pledged to invest up to $2 billion in the partnership on a deal-by-deal basis.

Indiana has a target allocation to private equity and real estate of 10 percent, with a maximum of 15 percent.