The New York State Common Retirement Fund (Fund) received a $33.8 million return from its investment in Autotask, an IT company located near Albany, according to New York State Comptroller Thomas P. DiNapoli. The Fund made nearly six times its original investment of $6 million, or a 25 percent internal rate of return.
“We are investing state pension fund dollars into New York companies and it is paying off for the companies and for the state pension fund, which made six times our original investment in Autotask,”said DiNapoli. “As part of the Fund’s diverse investment strategy, the In-State Program helps provide retirement security for state employees and retirees around the state. The added bonus of investing in a New York business and growing our state’s economy makes the program a double win.”
The In-State Program is designed to provide investment returns consistent with the risk of private equity by making investments that meet fiduciary standards. As partners of the Fund, 18 private equity managers invest in companies in need of capital for growth, to refinance ownership or for early stage investment. As of March 31, 2014, the Fund has committed more than $1 billion to the program, and invested $704 million in 265 companies across the state.
The Fund’s In-State Private Equity Program seeks out New York-based businesses for profitable investments. The Fund made two investments in Autotask: $3.2 million in 2008 (Hudson River Co-Investment Fund) and $3 million in 2004 (FA Tech Ventures). In addition to Autotask, 11 companies located in the Capital District including Apprenda and WhoSay have also received funding through the program.
“The New York State Common Retirement Fund’s In-State Private Equity Program has played a significant role in Autotask’s growth both regionally and internationally,”said Mark Cattini, CEO and president of Autotask. “We’ve grown from a start up with a few dozen employees to a global force with more than 300 employees worldwide. Additionally, 75 percent of Fortune 500 companies are currently being serviced by customers and partners that use Autotask.”
In addition to providing the Fund with a 20 percent internal rate of return on fully exited investments in the last five years, the program has helped generate jobs and private sector investment in New York. Since its inception, the program has helped create or retain nearly 4,000 jobs across New York, leveraging $6.7 billion in capital.
For more information on the program, visit: http://www.osc.state.ny.us/pension/instate/
About the Common Retirement Fund
New York State Comptroller Thomas P. DiNapoli is trustee of the New York State Common Retirement Fund, the third largest public pension plan in the United States with more than one million members, retirees and beneficiaries from more than 3,000 state and local government employers. The Fund has a diversified portfolio of public and private equities, fixed income, real estate and alternative instruments and has consistently been ranked as one of the best managed and best funded plans in the nation. Over the past 20 years, 82 percent of the cost of benefit payments has been funded by investment returns. The Fund’s fiscal year ended March 31, 2014.
About Autotask
Autotask provides a complete IT business management platform. Autotask’s SaaS-based solutions are available in seven languages and used in 93 countries. The company is headquartered in East Greenbush, New York and has offices in Chicago, Los Angeles, Beijing, London, Munich and Sydney. www.autotask.com