Indiana commits $150m to alternatives

The Indiana Public Employees’ Retirement Fund has made $150 million in private equity and infrastructure commitments in recent months, picking Lexington Partners and Panda Energy to manage capital.

Indiana, which manages about $14.2 billion in assets, committed $100 million to Lexington Capital Partners VII, which has been targeting $5 billion since December 2008.

The secondaries market is nothing new to Indiana, which has pursued its own strategy of buying small LP stakes. In February, Indiana purchased stakes in Lone Star’s sixth fund for about $30 million and Crestview Capital Partners Fund II for about $9 million. The pension also picked up $10.8 million worth of LP stakes in oil and gas-focused private equity firm EnCap Investments.

The pension also committed $50 million to Panda Energy, a Texas-based energy developer,  which held a first close on $178 million for its infrastructure fund in May. The fund is targeting $800 million.

Indiana was quite bullish on energy sector investments in 2009, committing more than $100 million to energy-focused funds.

With approximately $14.2 billion in assets under management at calendar year-end 2009, the Indiana Public Employees’ Retirement Fund (PERF) is among the largest 100 pension funds in the United States. The fund serves the needs of more than 220,000 public employees and retirees representing more than 1,200 employers including public universities, school corporations, municipalities and state agencies.