Firms & Funds

Florida commits more than $750 mln to PE and VC in Q1

-
Florida, private equity, pension fund
The space shuttle Discovery lifts off from Launch Pad 39A at the Kennedy Space Center in Cape Canaveral, Florida October 23, 2007. Discovery begins Mission STS-120 to the International Space Station. Photo courtesy Reuters/Pierre Ducharme - RTR1V8NG
  • Total includes $200 mln co-investment separate account
  • Thoma Bravo, Berkshire Partners among re-ups
  • $142.4 bln pension forms new relationship with Tiger Iron Capital

Florida Retirement System committed more than $750 million to private equity and venture capital in the first quarter, including a $200 million co-investment account managed by Lexington Partners, Communications Manager John Kuczwanski said in an email.

The $142.4 billion retirement system, whose investments are overseen by the State Board of Administration, allocated its largest commitment to a co-investment separate account managed by Lexington Partners. Florida Retirement System committed $200 million to LCP FSBA Co-Invest Account, according to Kuczwanski.

The retirement system also committed $200 million across a pair of Thoma Bravofunds. Of that figure, $150 million went to Thoma Bravo Fund XII and $50 million went to Thoma Bravo Discover Fund. Thoma Bravo set a $7 billion target for its new flagship fund. Discover Fund held a final close on $1.074 billion in February.

Florida also committed $150 million to Advent International GPE VIII LP, which closed on $13 billion in March.

The pension also allocated capital to new funds raised by Berkshire Partners, Denham Capital Management and Investindustrial (see Florida SBA Q1 commitment).

All but $40 million of Florida’s first-quarter commitments went to existing managers. The retirement system formed a new relationship with the Boston venture capital firm Tiger Iron Capital.

Outside private equity and venture capital, Florida Retirement System also committed $100 million to Blackstone Group’s fifth European real estate fund, which is targeting 7 billion euros ($8.07 billion), Kuczwanski wrote.

Florida Retirement System valued its private equity portfolio at $8.6 billion as of December 31, according to a quarterly investment report. The portfolio netted 9.36 percent over the past 10 years.

The State Board of Administration manages $179 billion of state assets. In addition to the retirement system, the board manages investments on behalf of Florida Hurricane Catastrophe Fund, local government assets and endowments.

Action Item: To access Florida’s investment reports, visit http://bit.ly/1WDcv27