LPs

Florida commits more than $1bn to private equity in 2019 Q4

Commitments include $600m to Lexington Partners and a separate account with Asia Alternatives.

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Florida State Board of Administration committed $1.34 billion to private equity in the fourth quarter of 2019, according to an email from spokesman John Kuczwanski, with almost $1 billion of that taken up by a co-investment and separate account.

Florida committed $600 million to Lexington Partners’ latest co-investment pool, Lexington Co-Investment Partners V, a co-mingled account. It is a four-year commitment of $150 million a year, Kuczwanski told Buyouts.

Minnesota State Board of Investment has also committed $300 million to this fund. Its target is $2.5 billion and its hard-cap $3 billion, Buyouts has reported.

Lexington closed its previous co-investment pool, Lexington Co-Investment Partners IV, at $2.1 billion in 2017, according to the Wall Street Journal.

Florida has been co-investing with Lexington Partners for a long time, having committed to eight pools in five separate entities, Kuczwanski said.

Florida committed another $300 million to Asia Alternatives Florida Investor III, a separate account. Asia Alternatives is a fund of funds investor focusing on Asia.

The other commitments for Q4 include:

• $200 million to KPS Special Situations Fund V, managed by KPS Capital Partners and closed in October at $6.12 billion, as Buyouts reported;

• $50 million to KPS Special Situations Mid-Cap Fund, also managed by KPS and also closed in October at just over $1 billion;

• €35 million ($38.7 million) to OpCapita Consumer Opportunities Fund III, managed by OpCapita, which focuses on the retail, consumer and leisure sectors in Europe;

• $30 million to Openview Venture Partners VI, managed by OpenView Venture Partners, which has a $450 million target, as reported by sister title Venture Capital Journal;

• $50 million to The Rise Fund II, managed by TPG Capital, with a $2.5 billion target, according to Bloomberg;

• €65 million ($71.9 million) to European Private Equity Opportunities Fund II, managed by Deutsche Beteiligungs, a German firm.

As of Jan. 30, the state board had $216.9 billion in assets under management. The estimated value of the Florida Retirement System Trust Fund was $170.4 billion.

Action Item: see Florida’s full slate of alternative investments for 2019 Q4 here.