Florida SBA sets private equity pacing, parameters for program

The Tallahassee-based trust fund has outlined a pacing plan for the next five years.

Institution: Florida Retirement System Trust Fund
Headquarters: Tallahassee, US
AUM: $183.20 billion
Allocation to alternatives: 25.70%

Florida Retirement System Trust Fund‘s Investment Advisory Council has reviewed the pension’s private equity program following its June board meeting, reports affiliate title Private Equity International. 

Under the review, the IAC sets new objectives for FSBA including:

  • Construct a private equity program that avoids the concentrated exposure to a particular vintage year, manager, strategy and geography.
  • Institute prudent portfolio diversification while minimizing the proliferation of manager relationships.
  • Priority ranking roadmap and for the private equity program and future allocations.
  • Review of current allocation to private equity strategies and set new target allocation.
  • Private equity pacing for the next five years is set at $1.75 billion-worth of commitments per fiscal year.

In Q2 2021, the $183 billion pension made more than $725 million-worth of private equity allocations. The commitments comprised $250 million to Hellman & Friedman Capital Partners X, $200 million to Searchlight Opportunities Fund II, $150 million to Hull Street Energy Partners II, $100 million to DCP Capital Partners II and $25 million to SVB SIF-Ascension.

Florida SBA currently has a 6 percent target allocation for private equity, which currently stands at 7.8 percent. The graphs below illustrate the pension’s buyout portfolio composition, private equity ranking roadmap and recent fund commitments.

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