NYSTRS reveals $900m of new private equity commitments, including Thoma Bravo megafund backing


US pension fund major the New York State Teachers’ Retirement System has revealed $900m of new private equity commitments.

Thoma Bravo was the big winner among the Q1 commitments, picking up $300m for its flagship Fund XIV and $200m for its Discover Fund III.

Tech-focused private equity major Thoma Bravo is believed to be eyeing up to $14bn for its latest flagship fund, just two years after hauling in $12.6bn for its most recent flagship vehicle in 2018.

The firm is also seeking $3bn for a new mid-market Discover Fund and $1bn for a small-cap Explore fund according to a Buyouts report from February.

Other NYSTRS commitments in Q1 saw Sterling Group picked up $200m for its fifth flagship fund, while Tenex Capital Partners III and One Rock Capital Partners III both received $100m.

Sterling Group is eyeing up to $2bn for Fund V, well above the $1.25bn it gathered for Fund IV in 2015, while One Rock Capital Partners is also hoping for a hefty fund size hike through a $1.5bn-targeting raise.

Tenex Capital is back in the fundraising market with its third flagship raise four years after closing its sophomore fund on its $814m hard cap.

The commitments boosted NYSTRS private equity portfolio to $21.4bn at the end of March, across 83 sponsors.

NYSTRS private equity portfolio has returned a net IRR of 12.4$ from inception to the start of this year, and a net multiple of 1.6x invested capital.

For the quarter ended March 31 there were $520.8m in contributions to its existing partnerships, and it received $341.8m in distributions.

Fiscal year to date, the portfolio was $325.5 million cash flow positive.

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