Firms & Funds

New Jersey backs EQT, MBK for $100 mln each

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New Jersey State Investment Council, private equity, pension fund, EQT, MBK Partners
New Jersey Governor Chris Christie, a 2016 Republican presidential candidate, greets legislators before delivering his State of the State address at the New Jersey State House in Trenton, New Jersey January 12, 2016. Photo courtesy Reuters/Shannon Stapleton
  • MBK hard capped at $4 bln for Asian buyouts
  • EQT targets $3.1 bln for third infra fund
  • New Jersey holds 9 pct of assets in PE

New Jersey State Investment Councilelected to move forward with two commitments to private equity and infrastructure funds at its Nov. 30 meeting, spokesman Willem Rijksen told Buyouts in an email.

New Jersey will make commitments of as much as $100 million each to funds managed by MBK Partners and EQT, Rijksen wrote. Both commitments remain subject to final negotiation of terms and conditions.

MBK is raising as much as $4 billion for its fourth flagship fund. MBK IV will invest in buyouts of Korean, Japanese, Chinese and Taiwanese companies, according to a New Jersey investment memo.

The firm’s previous fund closed on its $2.7 billion hard cap in 2013. Fund III was netting a 6.6 percent internal rate of return and 1.53x as of June 30, the New Jersey memo shows. Fund II, a 2008 vintage fund, was netting a 20.8 percent IRR and 2.18x multiple as of the same date.

EQT set a 2.9 billion euro ($3.1 billion) target for its third infrastructure fund, according to New Jersey documents. EQT Infrastructure III will invest 50 million to 300 million euros in 12 to 14 portfolio companies, focusing on businesses in energy, transportation and logistics, environmental, telecom and public service or facility assets.

“Performance of both Funds I and II has exceeded the pooled returns for the universe,” New Jersey staff wrote in a memo, noting that the firm’s realized portfolio companies grew average sales and EBITDA by 42 percent and 61 percent, respectively.

New Jersey held roughly 9 percent of its $73.3 billion investment portfolio in buyout and venture capital funds as of Aug. 31, its most recent investment report says. The commitment to EQT was made through New Jersey’s allocation to real assets, which represented 2.1 percent of the portfolio.

Action Item: More about New Jersey’s investment portfolio: www.nj.gov/treasury/doinvest