The $6 billion Montana Board of Investments said it committed a total of $25 million to two buyout funds earlier this year, giving the limited partner exposure to both the mega and middle markets.
A pledge of $15 million went to Hellman & Friedman Capital Partners VII LP, which will use the fund to make 10 to 15 investments in financial services, media, software, business services, healthcare, energy and industrial companies. The San Francisco buyout shop has set a target of $10 billion for the vehicle, which is shaping up as a favorite among LPs, having quickly raised $6 billion in a tough fundraising environment.
Montana also committed a slug of $10 million to TA XI for buyouts of mid-market companies in the technology, financial services, business services, healthcare and consumer industries, mostly in the United States, but with about 30 percent exposure to Europe, India and other emerging markets. Boston-based TA Associates plans to make about 30 equity investments in the range of $60 million to $350 million with an expected average deal size of $90 million. The firm has set a target of $3.5 billion for the vehicle. In March, the firm cut the carried interest on Fund XI to 20 percent from 25 percent.
Montana has a target allocation to private equity of 12 percent, with an allocation range of 9 percent to 15 percent. As of March 31, the LP’s actual private equity allocation stood at 13 percent.
In other news, Montana is looking to hire a portfolio manager for alternative investments. This position is responsible for all activities related to the management of its private equity and the real estate portfolios, which include buyout, special situation, and venture capital and real estate funds. Duties include overseeing the search for, and review of, private equity managers.
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