MassPRIM promotes within to build GP-led secondaries programme

Massachusetts Pension Reserves Investment Management has promoted a member of its private equity team to manage investments in GP-led secondaries.

Many LPs, especially public pensions, are limited in their ability to participate in continuation fund deals because of their usually rapid approval timelines. MassPRIM is among the first pensions to make policy changes to allow staff the flexibility to invest in these types of deals.

The $100.9 billion system disclosed the promotion of Eliza Haynes to investment officer, with her new focus on GP-led secondaries opportunities. The promotion was made at MassPRIM’s 30 January investment committee meeting, which affiliate title Buyouts listened to.

Haynes has worked for MassPRIM’s private equity team since 2020, where she has been responsible for sourcing, conducting due diligence and monitoring the fund’s commitments and co-investments. Last year, the state treasurer awarded her a citation for outstanding performance.

MassPRIM’s board approved a policy in November that delegates authority for the system’s executive director and chief investment officer to approve commitments to continuation funds on a case-by-case basis without investment committee and full board approval.

This will speed up the process to invest in continuation funds, which typically give investors 20 days to either cash out their existing stakes or roll into the new vehicle.

The system expects to commit no more than $100 million annually to continuation funds, according to a November presentation detailing the new policy. Since 2019, MassPRIM reviewed more than 30 continuation fund opportunities.

Also at the investment committee meeting:

• MassPRIM plans to commit between $2.2 billion and $3 billion to funds, co-investments and secondaries opportunities next year, committee documents said. The system committed $2.3 billion to private equity in 2023.

• The investment committee voted to keep the system’s target to private equity between 13 percent and 19 percent as part of its asset allocation review. As of the end of the year, the system allocated 17.1 percent of its total fund to private equity, according to committee documents.

• The private equity portfolio brought back a positive net cashflow of $192.9 million in the final quarter of 2023, with an increase in distributions of 13.8 percent from the third quarter. The uptick turned the system’s annual cashflow positive, having generated $55.3 million more in distributions than contributions.