Firms & Funds

Florida commits more than $687 mln to private markets in Q3

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florida state board of administration, private equity, pension fund
Florida Gators players celebrate with mascots Albert and Alberta after they defeated the LSU Tigers in their NCAA football game in Gainesville, Florida, October 6, 2012. Photo courtesy REUTERS/Joe Skipper - RTR38V7K
  • Mezzanine, buyout strategies lead Florida’s Q3 commitments
  • Largest commitment ($200 mln) goes to GSO
  • $143.1 bln pension commitment backs Crescent VII

State Board of Administration of Floridacommitted more than $687 million to private equity and other private investments in the third quarter, including $350 million for mezzanine strategies.

The largest commitment went to GSO Capital Partners, Blackstone Group’s credit arm, which recently closed its third mezzanine fund on its $6.5 billion hard cap. Florida re-upped $200 million to GSO Capital Opportunities III, a spokesman for the Florida board, John Kuczwanski, said in an email.

Florida backed Crescent Capital Group’s latest mezzanine fund as well, allocating $150 million to Crescent Mezzanine Partners VII. Crescent set a $3 billion target for its newest mezzanine fund, according to data published by Preqin. The firm’s previous mezzanine fund closed on more than $3.4 billion in 2013.

Crescent spokesman Bill Mendel could not be reached for comment.

Florida also committed to OpCapita’s latest fund, its first with the European distressed specialist. The State Board of Administration committed 35 million euros ($38.4 million) to OpCapita Consumer Opportunities Fund II, which recently held a final close on 350 million euros.

The State Board of Administration, which oversees Florida’s $143.1 billion retirement system, also secured commitments with a pair of buyout funds in the third quarter, allocating 90 million euros to Ardian LBO Fund VI and 45.75 million euros to a European fund managed by Deutsche Beteiligungs AG.

Ardian LBO Fund VI closed on 4 billion euros in September. Ardian raised an additional 1.5 billion euros to invest alongside as well. Deutsche Beteiligungs, a listed PE firm based in Frankfurt, Germany, could not be reached for comment.

Florida allocated $150 million to Blackrock Carbon Capital VI, a real estate fund managed by BlackRock, according to the email.

Florida had roughly 6.6 percent of its assets in PE as of Aug. 31, retirement-system documents showed. The pension is more than half a percentage point above its target allocation to the asset class.

Action Item: More about Florida State Board of Administration: www.sbafla.com/