Key Takeaways
- • Vermont Pension Investment Commission (VPIC) approved a $50 million commitment to Audax Private Equity Fund VIII at its Oct. 27 meeting, according to the primary source.
- • The Audax fund is a North American middle-market buyout strategy with a fundraising target of $6.25 billion, per meeting materials.
- • The commitment is VPIC's fifth new private equity pledge this year, with each going to a different manager, and Audax is a new manager relationship for the board.
- • As of June 30, the $8.2 billion Vermont Retirement Systems had a 10.2% private equity allocation versus an 11% target.
- • Investment consultant RVK assisted with the decision.
Summary
Audax represents a new manager relationship for VPIC. Per the meeting materials, the firm's "buy-and-build" approach to middle-market companies differs from the retirement systems' existing private equity exposures, adding a distinct strategy to the portfolio. Investment consultant RVK assisted with the due diligence and recommendation process.
The commitment is VPIC's fifth new private equity pledge this year, and each has gone to a different manager. The board also increased its commitment to a HarbourVest Partners secondaries fund in June, underscoring continued deployment into private markets.
The allocation decision comes as the retirement systems remain below their private equity target. As of June 30, the plan held a 10.2% allocation to private equity against a target of 11%, a gap of roughly 80 basis points that the new commitments help narrow.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.