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Indiana commits more than $300m to private equity and real estate

The pension, with assets of $16bn as of 30 June, 2008, made commitments in the past month to firms including Germany-based Triton Advisors and mezzanine firm Falcon Investment Advisors.

The Indiana Public Employees’ Retirement Fund has committed more than $300 million to private equity and real estate funds in the past month.

The pension, which reported assets of $15.7 billion as of 30 June, 2008, committed €30 million to German buyout firm Triton Advisers’ third fund and $40 million to US mid-market mezzanine firm Falcon Strategic Partners’ third fund, which is targeting $750 million.

Indiana PERF also committed $100 million to the Indiana Coinvestment Fund, which is a joint program between the pension and Credit Suisse. Also, the pension committed $150 million each to Mesa West Real Estate Income Fund II and Prima Mortgage Investment Trust.

Information about the Triton fund was not available by press time, and the firm did not return a call for comment.

Boston-based Falcon takes a more active role in its mezzanine business than a traditional lender, according to minutes from a New Mexico State Investment Council meeting from September. New Mexico SIC committed $25 million to Falcon on a recommendation from its private equity consultant Aldus Equity.

A lot of Falcon’s role “is focused around financing and strategy [but] from an operational perspective they will add people to portfolio companies and look at a strategic plan for the overall organisation”, according to the New Mexico meeting minutes.

Indiana committed $20 million to Falcon’s second fund, which closed on $440 million in 2005.

The pension’s coinvestment fund with Credit Suisse was created in 2006 with initial funding of $105 million. The fund was expanded to $155 million in 2007. The co-investment fund makes direct investments in Indiana businesses and commitments to Indiana-based private equity funds like Centerfield Capital Partners.

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