Montana re-ups to Tenex, backs DFW

Montana Board of Investments allocated $55 million across two private-equity funds in February and March, according to an investment disclosure included in its April meeting materials.

On March 15, Montana committed $35 million to Tenex Capital Management‘s second flagship fund. The New York City firm announced Tenex Capital Partners II’s final close on $814 million the next day.

Montana committed $20 million to Tenex’s previous fund, a $452 million 2011 vintage fund. The commitment netted a 19.65 percent internal rate of return and 1.42x multiple through Sept. 30, according to a February investment report.

Montana also committed $20 million to DFW Capital Partners V on February 29, according to the investment disclosure. How much Fund V is targeting is unclear.

The commitment marks Montana’s first allocation to DFW Capital Partners, a lower-middle-market buyout specialist with offices in Teaneck, New Jersey, and Chevy Chase, Maryland.

DFW Capital Partners specializes in acquiring healthcare and business- and industrial-services companies. In March, the firm acquired Superior Controls Inc, which provides engineering and automation services for the biotechnology industry.

DFW closed its previous fund on $162.5 million in 2013, beating its target by around 8 percent.

Montana’s investment board manages $14.3 billion of state assets, which includes a $1.1 billion private-equity portfolio. In recent months, Montana directed several PE commitments toward lower-middle-market and middle-market buyout firms.

The board committed $20 million each to Gridiron Capital and Angeles Equity Partners last year. In December, Montana committed $25 million to McCarthy Capital‘s sixth flagship fund, which is targeting $325 million.

Montana’s active private-equity portfolio was netting a 10.88 percent IRR and 1.45x multiple as of Sept. 30, according to a February investment report.

Action Item: For Montana’s latest meeting materials, visit http://bit.ly/1TlcM99