Gregg Gethard

The denominator effect rears its ugly head despite arguments that current market dislocation makes this an ideal time to increase private equity commitments.

Thoma Bravo, BlackRock, Insight Partners and Sequoia are a few shops that invested in the bankrupt cryptocurrency exchange.

MassPRIM makes an early commitment to the manager, which targets lower-mid-market business services, IT and healthcare IT companies.

'It’s a healthy correction and private markets still need time to digest some of the public market corrections and valuations,' said the system’s deputy CIO.

New Mexico commits $75m to the manager.

The system was one of the first to limit commitments due to the denominator effect.

Several firms like Thoma Bravo and Insight Partners invested in FTX through a financing round in 2021.

The denominator effect boosted the system’s allocation to private equity, forcing it to slow down its commitment schedule.

The $88.6bn system is the latest large pension entity to report a sizable loss.

The system’s investment in Spark Capital’s third growth fund has earned giant returns over the past few months.