Louisiana Spreads $130M In Pledges Among Three FoFs

Louisiana State Employees’ Retirement System is boosting its exposure abroad, pledging a total of $130 million to three funds of funds; two of which invest mostly in Europe.

The pension fund, which had a target allocation to private equity of 10 percent and an actual allocation of 8.5 percent as of June 30, committed $50 million to Adams Street Partnership 2009 Global Offerings Fund; $50 million to Pantheon Europe Fund VI; and $30 million to Parish Capital Europe Fund II.

Adams Street Partners began raising capital for its 2009 global fund-of-funds program in March, targeting $2 billion. About 60 percent of the capital will be deployed domestically. In Europe and Asia, 30 percent will go to developed markets and 10 percent to emerging markets. The Chicago-based firm, which also has offices in Palo Alto, Calif., London and Singapore, plans to back more than 120 groups over a four-year period through the program. The firm will invest in a variety of funds, from global mega-funds to country- and sector-specific funds and aims for a roughly 25 percent to 30 percent exposure to venture, and 15 percent to 20 percent to other stages of investment, with the rest going to buyout funds.

Louisiana State Employees’ Retirement System committed to seven of the firm’s previous vehicles. Adams Street Partners’s Non-U.S. Partnerships (vintage 1998) has generated an IRR of 21.5 percent as of March 31, 2008, according to the State Universities Retirement System of Illinois.

Pantheon Ventures’s Pantheon Europe Fund VI is earmarked mostly for pan-European, mixed-country and country-specific buyout funds, with 5 percent to 15 percent to venture capital funds. The firm can invest up to 20 percent of the portfolio in secondaries and co-investments. London-based Pantheon Ventures intends to gather about $1.7 billion for the vehicle. Pantheon Europe Fund III (vintage 2001) had generated a net IRR of 27.9 percent and a multiple of 1.5x as of June 30, 2007, according to the State Universities Retirement System of Illinois.

Chapel Hill, N.C.-based Parish Capital Advisors began marketing Parish Capital Europe Fund II in October, seeking €350 million ($439 million). The firm manages funds of funds that invest in early-stage venture capital funds and small- to mid-market buyout funds, committing mostly to experienced, small and niche managers. The firm began raising money for Parish Capital Europe Fund I LP, which had a target of €450 million, in 2006. Founded in 2003, Parish Capital opened an office in London in 2006. The firm has committed to Central Europe-focused private equity manager Innova Capital.

Louisiana State Employees’ Retirement System oversees $8.6 billion.