Florida pension system makes big bet on newcomer Gallatin Point

  • Why this is important: Florida kicks in $100 mln vote of confidence to newcomer Gallatin

Gallatin Point Capital, formed by ex-BlackRock and Treasury officials, received a vote of confidence from one of the largest pension pools in the U.S. as the firm continues to raise money for financial-services investments.

Florida State Board of Administration pledged $100 million to Gallatin Point, according to an activity summary from the pension system.

This was the first time Florida committed money to Gallatin Point, which makes sense since this is Gallatin’s debut run in the fundraising market.

“The fund offers diversification within the asset class through attractive investment opportunities in financial institutions, services and assets, as there have been extraordinary market and regulatory changes in the global financial services sector,” said John Kuczwanski, manager of external affairs for Florida SBA.

Matt Botein, ex-BlackRock chief investment officer and co-head of its alternatives group, and former Treasury official Lewis Sachs launched Gallatin in 2016.

Gallatin started operations as an investment adviser in 2017, according to the firm’s Form ADV.

How much Gallatin has raised or how much it is targeting is unclear. As of August, the firm had raised at least $94 million, according to an SEC filing.

Gallatin Point managed $687 million on a discretionary basis and $324 million on a non-discretionary basis, according to the firm’s Form ADV, filed in March.

The firm received seed backing from BlackRock, which has a non-control minority interest in Gallatin Point’s management company, the Form ADV said. The firm also made a $400 million non-discretionary commitment to Gallatin, according to the document.

BlackRock “has the right to provide a significant amount of the aggregate investment amount” of each investment Gallatin makes, the document said. BlackRock does not have a voting, equity stake in Gallatin and isn’t involved in daily operations.

Gallatin in June invested $200 million of committed equity into Hunt Cos, which focuses on the real estate and infrastructure markets.

The firm also joined Carlyle Group, Centerbridge Partners and Bain Capital Credit investing in the merger of Sirius International Insurance Group with Easterly Acquisition Corp that resulted in Sirius going public.

Action Item: Check out Gallatin Point’s Form ADV here: https://bit.ly/2iKjwA6