Nebraska re-ups $90 mln with McCarthy, Leonard Green

  • $21.5 bln pension backs two PE funds
  • Both McCarthy and Leonard Green are re-ups for Nebraska
  • McCarthy targets $325 mln for Fund VI

The Nebraska Investment Council re-upped a combined $90 million to two private equity funds at its February 25 meeting, said State Investment Officer Michael Walden-Newman in an email. Both commitments are subject to a legal review and agreement on fund terms.

The investment council approved a $50 million commitment to Leonard Green & Partners latest flagship fund at the meeting. Leonard Green has had strong demand for its new fund, and the firm recently raised Fund VII’s target to $8.5 billion from $7.5 billion, Buyouts reported. Fund VII has a $9.1 billion hard cap.

Leonard Green invests in retail, distribution, healthcare, aerospace/defense and consumer and business services companies. The firm’s previous fund has yet to generate meaningful returns, according to Oregon Investment Council documents, but its 2007 vintage vehicle netted an 18 percent internal rate of return and a 1.9x multiple through Sept. 30.

Nebraska also re-upped $40 million to McCarthy Capital’s sixth flagship fund, which is targeting $325 million for investments in lower middle market companies with strong growth, according to an investment presentation obtained by Buyouts.

McCarthy Capital Fund VI will acquire businesses with enterprise values of up to $200 million. The firm will invest up to $30 million per deal. McCarthy, which is based in Omaha, was founded in 1986.

The Nebraska Investment Council had $21.5 billion under management as of Sept. 30, according to its website.

Action Item: To learn more about Nebraska Investment Council, visit www.nic.ne.gov

Photo courtesy of Reuters