Firms & Funds

Florida commits $440 mln to PE in Q4 2017

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Florida State Board of Administration, pension fund, private equity
Revelers enjoy a ride over the South Florida Fair in West Palm Beach, Florida on Jan. 27, 2018. Photo by Sam Sutton.
  • Largest PE commitment goes to Charlesbank
  • Florida backs LightBay debut for $50 mln
  • PE program valued at more than $9.8 bln

Florida State Board of Administration in the fourth quarter committed almost $440 million to private equity funds, including $115 million to Charlesbank Capital Partners vehicles, spokesman John Kuczwanski wrote in an email.

Florida’s largest single commitment, for up to $105 million, went to Charlesbank’s ninth flagship fund. Charlesbank last year closed Fund IX on its $2.75 billion hard cap, a news release shows.

Florida allocated an additional $10 million to an overage fund Charlesbank set up to commit larger amounts to deals, as needed, according to Kuczwanski’s email and a Charlesbank news release.

The State Board of Administration, which oversees $209.7 billion of assets including Florida’s $167 billion retirement system, also backed LightBay Capital’s debut fund for $50 million.

Former Ares executives Nav Rahemtulla and Adam Stein launched the first LightBay fund last year and quickly raised $615 million, clearing the vehicle’s initial target by $165 million, Reuters reported earlier this year. The firm backs small and mid-market companies in the consumer, healthcare and business services sectors, typically investing between $25 million and $150 million per deal.

Florida’s fourth quarter also saw commitments to new funds raised by EnCap Investments, Post Oak Energy Partners and Thoma Bravo (see chart).

Florida SBA Q4 Commitments
Manager Fund Commitment(US$ millions) Style New Manager to SBA?
Charlesbank Capital Partners Charlesbank IX 105 Buyout No
Charlesbank Capital Partners Charlesbank IX Over 10 Buyout No
LightBay Capital LightBay Investment Partners I 50 Distressed Yes
EnCap Investments EnCap Flatrock Midstream Fund IV 65 Growth/Buyout No
Post Oak Energy Partners Post Oak Energy IV 60 Buyout No
Siris Partners Siris Partners IV 75 Buyout No
Thoma Bravo Thoma Bravo Discover Fund II 75 Buyout No
Source: Florida SBA

The State Board of Administration held 6.4 percent of its assets in PE through mid-2017, its most recent annual report shows. The portfolio was valued at a little more than $9.8 billion.

Florida in Q4 also made several commitments totaling $1.15 billion through its strategic platform, which includes its stakes in many private debt and credit-related strategies, as well as hedge and commodity funds.

Action Item: For more on Florida State Board of Administration, visit www.sbafla.com