NYSTRS to invest $100m in ADV's second Asia fund

A filing by the pension system offered no information on the overall target for Fund II; it just indicated this is a new GP relationship.

ADV was set up in 2013 by three executives who previously worked together at distress and special situations investor Mount Kellett Capital. The GP provides structured financing solutions to mid-market companies that require capital to resolve corporate and shareholder dislocations in addition to supporting growth. ADV operates across the region, but China and India are its key markets.

Asia Alternatives was the anchor investor in Fund I. Other disclosed LP commitments came from New York State Common Retirement Fund (NYSCRF) and Pennsylvania State Employees’ Retirement System (PennSERS). In addition to US pension programs, the fund also won support from a sovereign wealth fund, a superannuation fund, fund-of-funds, endowments, and family offices.

NYSTRS had $105.1 billion in total assets for the year ended June 2016, including $8 billion in private equity – or 7.6%, against a target allocation of 7%. Overall alternatives exposure amounted to $9.67 billion, or 9.2%. Buyout funds accounted for 51.6% of PE investments, with fund-of-funds on 14.2%, co-investment on 10.9% and VC on 6.7%. As of June 2017, NYSTRS had exposure to 221 active partnerships through 92 GP relationships.

Only 3% of NYSTRS’ private equity exposure is in Asia, excluding fund-of-funds and secondary funds. Dedicated Asia vehicles in its portfolio include CVC Capital Partners’ fourth pan-regional fund; KKR Asian Fund II; The Carlyle Group’s fourth Asia buyout fund; Pacific Equity Partners’ latest Australia and New Zealand vehicle; and MBK Partners’ fourth North Asia fund.

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• Topics
• Greater China
• South Asia
• Fundraising
• Credit/Special Situations
• LPs
• Asia
• ADV Partners
• New York State Teachers’ Retirement System (NYSTRS)