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The Connecticut Retirement Plans and Trust Funds is expanding its private equity portfolio with new commitments to two existing managers, as the pension fund looks to capitalize on resilient global mergers and acquisitions activity during the first quarter of the year.
Materials from the CRPTF’s May Investment Advisory Council meeting noted that global M&A activity remained robust during Q1 2026, despite geopolitical and macroeconomic headwinds, with particularly strong dealmaking in North America and across the energy and business-to-consumer sectors.
The materials also noted that artificial-intelligence-related transactions continued to dominate venture capital fundraising and dealmaking activity, while software-related investments have slowed as investors reassess the long-term impact of AI on the sector.
As part of its 2026 pacing plan, the CRPTF is allocating €150M to Verdane’s Edda IV fund and up to $300M to Welsh, Carson, Anderson & Stowe’s WCAS XV fund, both existing managers that the pension fund said have demonstrated strong sourcing capabilities and value-creation expertise.
Founded in 2003, Verdane manages approximately €10.7B, of which €1.9B is dedicated to its Edda strategy. The firm is a European lower-middle-market buyout manager focused primarily on Northern Europe, with particular emphasis on the Nordic region, DACH markets and the U.K. Verdane currently represents 1.3% of the CRPTF’s Private Equity Fund (PEF) exposure.
Headquartered in Oslo, Verdane is led by an experienced group of partners with complementary operational and entrepreneurial backgrounds across its core digitalization investment theme. The firm’s leadership team is supported by a broad investment platform with local on-the-ground presence across offices in Northern Europe and London, as well as a dedicated value-creation team.
Welsh, Carson, Anderson & Stowe currently represents approximately 2% of the CRPTF’s PEF total exposure. Founded in 1979, WCAS operates offices in New York City and San Francisco and manages approximately $27B in assets under management. The firm is fully owned by its general partners and led by a management committee. WCAS XV is a middle-market buyout fund focused primarily on North America, targeting investments across the technology and healthcare sectors.
According to the materials, the CRPTF’s Private Equity Fund represented approximately 12.2% of its total portfolio, including cash balances, as of Mar. 31, 2026, with a market value of approximately $8.3B.
Under the CRPTF’s 2022 strategic asset allocation plan, the pension fund maintains a 15% target allocation to private equity. For 2026, the PEF pacing plan targets $2.4B in new commitments.
The strategy behind the latest commitments remains focused on re-ups and expanded relationships with existing high-conviction managers, while continuing to emphasize fee-advantaged structures, including co-investments.