Prospect Partners LLC has closed its second fund with $165 million in limited partner commitments. The Chicago-based firm plans to continue its focus on management-led acquisitions of lower mid-market companies. LPs in the new fund include Goldman Sachs, GM Investment Management Corp., JP Morgan Fleming Asset Management, University of Notre Dame, Wilshire Associates, Private Advisors and the Northern Trust Corp.

Citigroup Venture Capital and Nikko Principal Investments have partnered on a PE fund that will target buyout opportunities in Japan. Each firm has contributed about $100 million.

Thoma Cressey Equity Partners has opened an office in Boston. The Chicago-based buyout firm said the new office will focus on health care, and will be led by partner David Mayer, who relocated from Chicago. TCEP also features a San Francisco office.

Alaska Gov. Frank Murkowski this month signed a bill that increases the amount of money the Alaska Permanent Fund can invest in alternative assets (such as venture capital and private equity hedge funds). The original allocation was 5% of total assets, but that now has been bumped up to 10 percent.