50 South seeks $750m for 11th fund of funds

50 South is targeting $750 million for its latest fund of funds with a structure in which it will not charge carried interest, according to pension documents.

Details about Fund XI were included in a presentation by consultant NEPC at Alameda Contra Costa Transit District Employees’ Retirement System’s April 25 board meeting. Buyouts reviewed this presentation.

The fund is expected to close in Q4 and has raised $514 million to date, according to the presentation.

According to NEPC, Fund XI will invest 70 percent of its capital into primary funds, 20 percent into secondary and secondary direct investments with the remaining 10 percent in co-investments. The pool will back 15 to 18 buyout funds and 12 to 14 venture funds, the documents said.

Fund XI charges management fees based on commitment sizes, the presentation said. LPs committing under $5 million will pay 94 basis points while investors committing between $5 million and $20 million will pay 64 basis points. LPs committing above $20 million will pay 44 basis points, according to the presentation.

50 South will participate as an LP in Fund XI, according to NEPC, though the documents did not disclose the size of the stake.

The manager used this strategy for Fund X, according to documents from the Murfreesboro (Tennessee) Community Trust.

Buyouts investments will largely focus on mid- and lower mid-market funds. Venture will primarily be made in seed and early-stage funds but will allow for some exposure to late-stage and growth equity, according to the documents.

LPs will be able to adjust their exposure to buyouts or venture through these separate sleeves, NEPC said.

City Pension Fund for Firefighters and Police Officers in the City of Miami Beach committed $5 million to Fund XI in September, according to a review of its minutes.

Miami Beach Firefighters also committed to Fund X, as did Abilene Firemen’s Relief & Retirement Fund, according to Buyouts’ database.

50 South made commitments to funds from Thoma Bravo, Mason Wells, Lightspeed Venture Partners, Zhen Partners, Andreessen Horowitz, Mayfield and Atlas Ventures in Fund IX, according to a presentation the manager made to the Shelter for Abused Women & Children.

Other LPs known to have committed to 50 South’s core private equity funds include the Eastern Washington University Foundation, Sargent Family Foundation and Arkes Family Foundation.

Fund X raised at least $765 million, according to SEC documents filed in December 2022.

According to NEPC, the 2020 vintage Fund IX has a Net IRR of 18.4 percent, a TVPI of 1.25x and no recorded DPI. The 2018 vintage Fund VIII has a Net IRR of 16.4 percent, a Net  TVPI of 1.43x and no recorded DPI. The 2016 vintage fund VII has a Net IRR of 18.7 percent, a Net TVPI of 1.87x and a net DPI of 0.43x.

50 South did not return a request seeking comment.