Florida SBA backs Warburg, Stone Point in Q4

  • $186.2 bln pension system re-ups $143 mln across two funds
  • Also makes $450 mln across debt, special-situations strategies
  • PE portfolio valued at $9.1 bln

Florida State Board of Administration re-upped with two private equity funds in Q4.

Florida’s $186.2 billion pension and trust system allocated $75 million to Stone Point Capital and $68 million to Warburg Pincus’s debut dedicated China fund, spokesman John Kuczwanski said.

Stone Point set a $5.25 billion target for its latest flagship fund, Trident VII LP, a Hamilton Lane report for Teachers’ Retirement System of Louisiana shows. Louisiana Teachers’ committed as much as $75 million to the fund in November.

Trident VII will invest in around 25 financial-services companies with enterprise values up to $3 billion, the report says. The firm will typically provide as much as $500 million of fund equity per deal.

Trident VI, which raised $4.5 billion in 2014, was netting a 10.8 percent internal rate of return and 1.1x multiple through June 30, according to Hamilton Lane. The firm’s $3.6 billion 2010 vintage fund had netted an 8 percent IRR and 1.3x multiple as of that date.

Florida participated in Warburg Pincus China’s first and final close on $2 billion in December. The fund was oversubscribed.

Warburg has invested $6 billion in Chinese assets since 2005, a September New Jersey Division of Investment memo says. Those investments had delivered a 17 percent net IRR and 1.8x multiple.

The China vehicle will invest on a 50-50 basis alongside Warburg Pincus’ $13.4 billion flagship fund, which held a final close in 2015, according to the New Jersey memo.

Florida held 6.8 percent of its assets in PE as of Nov. 30, its most recent performance report shows. Its PE portfolio was valued at $9.1 billion through June 30, according to its annual report.

In addition to its commitments to private equity, Florida allocated $450 million across three senior-loan, special-situations and distressed-debt vehicles, Kuczwanski said. The allocations were made through Florida’s strategic investments allocation, which includes a variety of private debt strategies.

The largest of those commitments, $200 million, went to a Cerberus Capital Management fund, FBSA LLOF, for investments in senior loans. Florida also committed $150 million to an LCM Partners distressed fund and $100 million to a special-situations vehicle managed by Deerfield Investments.

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