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Los Angeles County propels Centerbridge toward $6 bln hard cap

  • Centerbridge close to finishing Fund III
  • Expected to hit hard cap of $6 bln
  • GP to commit at least 2 percent

The Los Angeles County Employees Retirement Association approved a commitment of up to $100 million to Centerbridge Partners’s third fund at its meeting the week of Oct. 6, Chief Investment Officer David Kushner told Buyouts in an email.

Centerbridge Partners is expected to hold a final close at Fund III’s $6 billion hard cap on Oct. 24, according to a Portfolio Advisors memo released by the Pennsylvania Public School Employees’ Retirement System. Pennsylvania PSERS committed up to $100 million to Fund III at its Aug. 7 meeting.

Other limited partners in Fund III include The Pennsylvania State Employees’ Retirement System and the San Francisco Employees’ Retirement System. Centerbridge Partners declined to comment on fundraising.

Centerbridge Partners intends to invest Fund III in both distressed-for-control deals and leveraged buyouts of companies located in Western Europe and the United States. The general partner will provide at least 2 percent of the aggregate capital commitments to the fund, according to Pennsylvania PSERS documents.

The firm closed its previous fund on $4.4 billion in 2011. That pool had generated a 1.1x multiple and 6 percent internal rate of return as of March 31, according to Pennsylvania documents.

Centerbridge Partners was founded in 2005 by Jeffrey Aronson and Mark Gallogly. The firm maintains offices in New York and London.

In September, Los Angeles County Employees Retirement Association approved a commitment of up to $150 million to Hellman & Friedman Capital Partners VIII. The $47 billion retirement association was 2.6 percentage points below its 11 percent target allocation to private equity as of June 30, according to a performance review made available by Kushner. The retirement association had an 8.4 percent allocation to private equity as of the same date.