PERF Launches $50 Million New Component of Indiana Investment Fund
Additional Opportunities Prompt Addition to Fund
INDIANAPOLIS (March 21, 2007) - The Indiana Public Employees' Retirement Fund (PERF) has launched a new $50 million Indiana Investment Fund A as part of the $105 million Indiana Investment Fund created in June 2006. The new "sidecar" fund boosts the overall Indiana Investment Fund to $155 million.
PERF launched the Indiana Investment Fund (IIF) in 2006 with a $100 million commitment combined with a $5 million investment from fund manager Credit Suisse. The Indiana Teachers' Retirement Fund (TRF) has committed $50 million to the IIF's new Fund A.
"Based on the work of our fund manager Credit Suisse, it became clear that there were additional opportunities within Indiana-based private equity funds," said PERF Executive Director David Adams. "It seemed logical that TRF would be a natural choice for the additional investment so we authorized Credit Suisse to approach TRF with the opportunity."
The IIF includes two investment components. The first focuses approximately $60 million on direct investments in quality businesses. The second component of approximately $40 million, invests in Indiana-based private equity groups. The $50 million new Fund A will focus exclusively on the Indiana-based private equity component of investments.
"Adding additional funds to existing initiatives such as the IIF is not unusual," said Doug. Kryscio of Mercer Investment Consulting, a consultant to PERF. "When additional opportunities are identified, the addition of a 'sidecar' fund is a common and prudent approach to expanding an initiative such as the Indiana Investment Fund."
PERF's board of trustees voted in October to permit the investment and, in November, TRF's board of trustees authorized the $50 million investment. The deal was finalized on March 21. No additional investors will be permitted in the IIF and PERF will remain in majority control of the fund's governance. PERF and Credit Suisse remain the sole investors in the IIF's direct investment category.
The IIF targets non-life science business investment opportunities. It invests in firms doing business in Indiana, companies looking to expand or move operations to Indiana, and firms that invest in Indiana. Each investment undergoes rigorous review and meets PERF's traditionally high rate of return expectations.
The Public Employees' Retirement Fund (PERF) is a $16.3 billion retirement fund headquartered in Indianapolis that serves the needs of more than 220,000 public employees and retirees throughout Indiana.
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CONTACT:
Jeff Hutson
Director of Communications
(317) 234-3401
jhutson@perf.in.gov
