Two US public pension funds have deepened their exposure to private markets, with recent commitments from the Cincinnati Retirement System and the Texas County & District Retirement System (TCDRS) backing new private equity and venture capital managers.
At its 1 May meeting, the Cincinnati Retirement System approved a total of $20m in new commitments across two private market strategies. The $2.3bn public pension fund committed $10m to Sapphire Ventures Fund VII, a late-stage venture vehicle, and $10m to WindRose Health Investors VII, a healthcare-focused buyout fund. Both managers are new relationships for the fund.
The moves come as Cincinnati’s actual allocation to private equity stood at 11.3% as of 31 March, exceeding its 8% target. The commitments were made with support from investment consultant Marquette Associates.
Meanwhile, TCDRS, the $50bn Austin-based pension system, has disclosed a $30m commitment to Contrary Capital V, an early-stage venture capital fund. The allocation, made on 2 June, represents TCDRS’s first investment with Contrary, according to an investment activity update posted to its website.
TCDRS continues to lean into private equity strategies, with an actual allocation of 26.6% as of year-end 2023, above its 25% target.
