Firms & Funds

Minnesota backs Warburg’s $2 bln China fund

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Minnesota, private equity, pension fund, China
Donnie Straub of Minneapolis touches a star bearing U.S. music superstar Prince's name on an exterior wall of First Avenue, the nightclub where Prince got his start in Minneapolis, Minnesota, April 21, 2016. Prince, the innovative pop superstar whose songwriting and eccentric stage presence electrified fans around the world with hits including "Purple Rain" and "When Doves Cry," died on Thursday in Minnesota. He was 57. REUTERS/Craig Lassig TPX IMAGES OF THE DAY - RTX2B4AJ
 

  • $80.9 bln pension commits $100 min to Warburg
  • Minnesota re-ups with Thoma Bravo, Permira
  • Minnesota is well below its 20 pct target for alternatives

Minnesota State Board of Investmentapproved commitments totaling more than $318 million at its Sept. 8 meeting.

All three of Minnesota’s private equity commitments were re-ups with existing managers, state documents show. The commitments remain subject to final negotiations.

State Board of Investment, which oversees $80.9 billion of retirement, trust and cash accounts, committed $100 million to a China-focused investment fund being marketed by Warburg Pincus. The firm is seeking $2 billion for the fund.

China’s been a strong area of focus for the firm in recent years, having completed more than half its 27 investments in the country since 2014. Last year, the firm generated almost $1 billion from its investment in China Biologic Products, a blood-collection company whose shares trade on the Nasdaq Stock Market, Bloomberg reported.

Warburg Pincus declined to comment.

In addition to its commitment to Warburg Pincus, Minnesota also committed as much as 150 million euros ($168.3 million) to Permira’s sixth flagship fund, targeting 6.5 billion euros with a 7.25 billion euro hard cap, and $100 million to Thoma Bravo Fund XII, which is targeting $7 billion.

The board also approved a $150 million commitment Prudential Capital Partners VI, a private credit fund, and $50 million for Angelo, Gordon & Co’s new Asian real estate fund.

All the board’s new commitments fall under the umbrella of alternative assets, which Minnesota classifies as PE, real estate, mezzanine debt and natural-resource funds.

Minnesota State Board of Investment was 7.2 percentage points below its 20 percent target allocation for alternatives as of June 30, according to its website. Minnesota valued its alternative-asset portfolio at $7.4 billion.

Action Item: For more information about Minnesota State Board of Investment, visit mn.gov/sbi/index.html