Idaho mulls re-up to Lindsay Goldberg; Frazier, Veritas, TPG, Leonard Green, Blackstone boost PE returns

  • Assets under management: $16.59 bln
  • PE portfolio: $1.18 bln
  • PE Actual/Target allocation: 6.6 pct / 8 pct
  • Whom to contact: Jenny Flint []
  • Why this is important: LP’s recent commitments have been only re-ups

Public Employee Retirement System of Idaho is mulling a $50 million re-up to Lindsay Goldberg’s fifth fund, targeting $4 billion.

The system re-upped $140 million to PE in 2018, including $50 million each to Blackstone’s third energy fund and TPG Partners’ eighth flagship fund, a Jan. 15 presentation by its investment adviser, Hamilton Lane, said.

Idaho also committed $40 million last year to TPG’s new Tech Adjacencies strategy, which targeted $1.5 billion. The fund raised $924 million from 53 investors, an SEC filing dated Oct. 31, 2018, shows.

Top PE performers

Idaho’s PE portfolio distributions outpaced contributions and added a net cash inflow of $90.2 million for fiscal 2018 ended June 30.

Five partnerships accounted for 54 percent of the PE portfolio’s positive net value gain of $209.9 million for the year ended June 30.

DocuSign’s IPO helped Frazier Technology Ventures’ second fund produce an internal rate of return of 84.86 percent, as of June 30. The fund produced an IRR of 15.71 percent since inception for the pension system.

DocuSign debuted at $29, raising $629.3 million in April 2018. The shares closed Jan. 16 at $43.06.

Other top performers included Veritas Capital Fund Management’s fifth fund, which produced an IRR of 21.52 percent, Blackstone’s debut energy fund, which produced an IRR of 14.37 percent, Leonard Green’s fifth fund, which produced an IRR of 18.53 percent, and TPG’s third growth fund, which produced an IRR of 27.67 percent, as of June 30.

Idaho’s PE portfolio was composed of buyouts (76 percent), venture capital (9 percent), co/direct investments (6 percent) and secondaries (4 percent) of the total exposure as of June 30.

Middle-market buyouts produced the highest IRR, 12.54 percent, followed by large buyouts (12.15 percent), megabuyouts (8.49 percent) and small buyouts (7.24 percent), as of June 30.

Idaho’s PE portfolio had a home bias, with 79 percent of investments in North America, 16 percent in Western Europe and 3 percent each in Asia-Pacific and the rest of the world, as of June 30.

Idaho had a core-managers group that accounted for more than 85 percent of total exposure and 79 percent of the PE portfolio value; almost 80 percent of the core group partnerships were buyouts, as of June 30.

The state’s PE portfolio consists of funds from Advent International, Apollo Global Management, Bridgepoint Capital, CVC Capital Partners, Endeavour Capital, Enhanced Equity, EPIC Ventures, First Reserve, Gores Group, KKR, Kohlberg Investors, Providence Equity Partners, Silver Lake Partners and Veritas Capital.

Idaho’s co-investment/ direct investments and secondaries funds are handled in separate accounts with Hamilton Lane.

The PE portfolio produced an IRR of 21.1 percent over one year, 9.95 percent over three years, 10.87 percent over five years, 8.3 percent over 10 years and 8.88 percent since inception.

Action Item: Read more on the Idaho pension system here: