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Florida SBA: PE was strongest performer in fiscal ’18

  • Assets Under Management: $160.4 bln
  • PE Portfolio: $13.8 bln
  • PE target allocation: 6 pct
  • PE actual allocation: 7.1 pct
  • Whom to contact: John Kuczwanski (John.Kuczwanski@sbafla.com)
  • Why this is important: A well-diversified PE portfolio can deliver alpha for LPs

Florida State Board of Administration said that for fiscal 2018 ended June 30, private equity was its strongest performer, generating 17.3 percent.

The pension system overall returned 8.98 percent on investments for the fiscal year, exceeding its 8.22 percent benchmark.

The system’s PE allocation was 7.1 percent against the target of 6 percent, as of June 30.

Florida SBA aimed to commit up to $2 billion to private equity this year, John Bradley, senior investment officer in PE at Florida SBA, previously told Buyouts.

But no new PE commitments will be announced until the end of October, said John Kuczwanski, manager of external affairs at the pension system.

Florida SBA’s private equity profile has changed steadily in the past five years to a diversified portfolio across geographies, fund sizes, sectors and vintage years.

Buyouts, including co-investments, account for two-thirds (66 percent) of the PE portfolio, venture capital is 16 percent, distressed investments is 12 percent and secondaries are 6 percent, Bradley said.

Large funds represent 30 percent of allocation in the PE buyout portfolio, mid-market funds are 35 percent and small-market funds are 35 percent, according to pension documents.

Florida SBA’s PE program has 68 GP relationships across 184 funds. Of these, 48 GPs are core, ongoing relationships, documents said.

Florida SBA has committed $24 billion to 236 funds in PE and the portfolio has returned 13 percent since inception.

The private equity portfolio returned 13.77 percent over three years and 15.14 percent over five years through June 30, 2018, documents said.

Action Item: Read more on Florida SBA here https://bit.ly/2Ler0M5