The Virginia Retirement System made $1.325 billion in commitments and mandates across private equity, asset-based credit, public equities and growth companies, according to materials from its Oct. 15 board meeting.
The largest single award was a $400 million mandate to J.P. Morgan Hybrid Growth, which invests in both public and private growth companies. It sits within the $136 billion pension’s exposure management portfolio.
VRS also committed $375 million to three private equity funds in September. That included $200 million to Audax Private Equity’s Fund VIII, which buys controlling stakes in middle- and lower-middle-market companies in business and financial services, health care, industrial services and technology.
The pension also put $145 million into Spectrum Equity’s Fund XI, which closed at $2.5 billion this month and targets growth-stage software, artificial intelligence and data companies. Another $30 million went to Monomoy Capital Partners’ Monomoy Family Fund, which buys family-owned businesses and corporate carve-outs.
In credit, VRS committed $300 million to Castlelake Asset-Based Private Credit IV. The fund invests in specialty finance, real assets and aviation.
VRS also hired Atalan Capital for a $250 million mandate in a concentrated global long-only stock strategy.
The pension returned 12.1% after fees for the fiscal year ended June 30. That beat its 6.75% assumed return. For the 12 months ended Aug. 31, however, VRS returned 11.7%, trailing its 13.1% benchmark. The shortfall came from the $19.3 billion private equity portfolio, which returned 5.3% against a 26% benchmark. Public equities gained 23%, ahead of their 21.2% benchmark. The $7.7 billion diversifying strategies portfolio returned 9.2%, beating its 6.5% benchmark.
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