The California-based system looks to commit up to $450m in 2024.
LPs are working to ensure that they retain the no-fee, no-carried interest structure on their co-investments, essentially looking for a 'status quo' option.
The sovereign wealth fund may also explore buying an asset manager.
The system looks to take advantage of its underallocation to the asset class.
The system is a new entrant into private equity.
The system sees possible 'J-curve effect' challenges ahead as it builds its PE program.
The system also will explore relationships with new managers.
'The rules overall are a step forward for the industry but there are some unique intricacies to look at regarding the transparencies we are used to,' says a member of the system’s investment staff.
SWIB is the latest massive pension system to consider upping its allocation.
'We’ll have more diversified co-investment opportunities this way rather than us just doubling down on what our existing GPs come to us with,' says Arizona’s chief investment officer Michael Viteri.