Health Care Foundation Pledges $30M, To Take Hiatus

The $541 million Health Care Foundation of Greater Kansas City recently pledged a total of $30 million to a fund-of-funds manager and an infrastructure investor but the financial crisis has apparently cooled the foundation’s interest in private equity. It now expects to take a hiatus of up to a year from additional commitments to the asset class.

The recent pledges included a $20 million commitment to HarbourVest Partners, of which $6 million will go to fund-of-funds HarbourVest International Private Equity Partners VI; $4 million to secondaries fund Dover Street VII; and $10 million to fund-of-funds HarbourVest Partners IX Venture Fund. The limited partner also earmarked $10 million for Macquarie Infrastructure Partners II, earmarked for infrastructure investments in the United States and Canada.

But that should do it for Health Care Foundation of Greater Kansas City for a while. Orval Fisher, CFO, told Buyouts, that “given the market turmoil over the last couple of months, I don’t think we will be making any more private equity commitments in the next six to 12 months.”

As of July, the foundation had a 6.6 percent actual allocation to private equity, well below a target allocation of 10 percent; $80.6 million had been committed to private equity, of which $27.4 million had been called.

The Health Care Foundation of Greater Kansas City provides grants to improve the access and quality of health care for uninsured and underserved individuals in Kansas City and a six-county service area that covers parts of Kansas and Missouri. The foundation was established in 2003 with the proceeds from the sale of non-profit hospital operator Health Midwest to HCA Inc.