The State of Wisconsin Investment Board is planning to sell a private equity legacy portfolio that was valued at about $203 million as of 31 December 2013, according to documents from the pension’s board meeting Wednesday.
The legacy portfolio currently includes 48 funds, although Wisconsin plans to exclude 14 funds that are managed by Brinson Partners from the sale.
The legacy portfolio was valued at $900 million on 31 December 2006 and has liquidated eight funds and made $1.2 billion in distributions as of 31 December 2013.
Wisconsin is aiming to commit about $1.2 billion to private equity funds this year. The pension will invest in new funds on a “selective basis” and will focus on potential re-up commitments, according to the documents.
Recently, Wisconsin committed $67.5 million to EnCap Energy Fund IX, a $5.15 billion vehicle and $130 million to CVC European Equity Partners VI, a 10.9 billion fund, according to data from Secondaries Investor’s sister publication Private Equity International.Â
Wisconsin has previously invested in secondaries funds managed by Ridgemont Partners and Coller Capital, according to PEI data. The secondaries funds in Wisconsin’s private equity portfolio have generated a net internal rate of return of 9.7 percent as of 31 March, according to the documents.
Wisconsin has a 7 percent target allocation to private equity and debt funds as of November 2013, according to its website. The pension system manages more than $100 billion of assets.
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