PSERS considers private markets portfolio sale

The Pennsylvania Public School Employees’ Retirement System will sell the interests for at least 80 percent of their 30 September net asset value.

The Pennsylvania Public School Employees’ Retirement System (PSERS) has authorised the sale of select limited partnership interests in private market funds, according to documents from its 30 April board meeting.

PSERS will allow its chief investment officer James Grossman to select which funds will “make up the most efficient” portfolio to sell. PSERS also said the portfolio would sell for at least 80 percent of the interests’ net asset value as of 30 September 2014, the board meeting documents disclosed.

A spokesperson from PSERS would not provide additional comment.

At the end of last year PSERS sold a portfolio of roughly 20 private equity fund interests for $2 billion. Ardian bought 17 of the interests for $1.75 billion and the remaining three interests were sold to Goldman Sachs Asset Management and Deutsche Asset and Wealth Management. The portfolio mostly consisted of US mid-market or large-cap funds.

“PSERS is endeavouring to reduce its exposure to private equity to 15 percent of the fund’s size, and the depth of the secondary market makes possible a large asset sale that will bring up closer to our long-term target,” Grossman said in a statement at the time.

PSERS has $52 billion of asset under management as of 30 June 2014, according to its website.