LPs

Louisiana Teachers’ commits to Turnbridge debut, Bridgepoint

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  • Turnbridge is targeting $350 million
  • Texas firm is focused on upstream energy
  • Louisiana has an 11 pct allocation to PE 

The Dallas- and Houston-based firm is targeting $350 million with a $400 million hard cap for the fund, which it will use to make investments in the North American energy sector, according to a Hamilton Lane presentation made available by the retirement system.

Turnbridge Capital will invest between $30 million and $60 million of equity per deal, with the expectation that Fund I will be 70 percent weighted toward upstream investments.

Kent Sweezey, Todd Tomlin, Robert Horton and David Graham founded Turnbridge Capital in 2008, according to the report. The team has already completed seven pre-fund investments, which had grossed a 53.9 percent internal rate of return and a 2.3x investment multiple as of March 31, according to Hamilton Lane.

“The senior team has a broad range of prior investing and operating positions, including investment banking, private equity and engineering roles,” Hamilton Lane wrote, noting that Mitchell Cox and John Clarke are also partners at the firm.

The firm expects to hire a chief financial officer/controller and two associates “in the near term,” according to the report, as well as a third-party accounting and compliance resource to support its back office.

The $16.9 billion retirement system also committed up to $75 million to Bridgepoint Advisers’s fifth European buyout fund, which is targeting 3.5 billion euros ($4.7 billion) with a 4 billion euro hard cap.

As with Bridgepoint Europe IV, Bridgepoint Europe V will invest 150 million euros to 250 million euros in companies with enterprise values ranging from 200 million euros to 600 million euros, according to a Hamilton Lane report. Bridgepoint Europe IV, a 2009 vintage, had netted an 11.5 percent IRR as of Dec. 31, according to the report.

Teachers’ Retirement System of Louisiana was under-allocated to private equity as of May 31, according to its website. The retirement system had an 11 percent allocation on a 13 percent target as of that date.

In July, Teachers’ Retirement System of Louisiana made two commitments totaling $150 million to Lone Star Fund IX and Roark Capital Partners IV.