- 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
Revelers enjoy a ride over the South Florida Fair in West Palm Beach on Jan. 27, 2018. Photo by Sam Sutton.