LPs

New York Common commits to MBK, Leonard Green, Fortissimo funds

Reported commitments for November included some made through vehicles focused on Asia, Israel and emerging managers.

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New York State Common Retirement Fund made $525 million in private equity commitments in November, according to a document posted on the state comptroller’s website.

The fund committed $65 million to MBK Partners Fund V, managed by MBK Capital Partners with a $6 billion target, according to Reuters, and a $6.5 billion hard cap, according to New Jersey State Investment Council documents. This commitment was made through the NYAI Co-Investment Fund III and closed on November 15.

The system committed $20 million to Fortissimo Capital V, managed by Israel-based Fortissimo Capital, which focuses on technology and industrial companies. Its fourth fund closed in 2015 at $470 million, according to the firm’s website. This commitment was made through an Israel-focused separate account New York Common made with Hamilton Lane in 2018, as Buyouts has reported.

New York Common doled out another $20 million to Polaris “Jewel” Capital Fund V, managed by Tokyo-based Polaris Capital Group. New York Common invested $15 million in the firm’s fourth fund, which closed at about $686 million in 2017, according to data from sister publication Private Equity International. This commitment was also made through NYAI Co-Investment Fund III.

The biggest commitment was $400 million to Green Equity Investors VIII, managed by Leonard Green & Partners. This fund closed in December at $12 billion, according to sister publication PE Hub. Notably, New York Common apparently did not invest in Leonard Green’s debut mid-market fund, Jade Equity Investors, which raised and closed alongside the flagship.

Finally, through its emerging manager program, New York Common invested $20 million in NexPhase Capital Fund IV, managed by NexPhase Capital and focused on lower middle market companies in the healthcare, software and services and consumer sectors. Mueller and Monroe advised on this commitment. This fund is targeting $400 million, according to a Form D. The commitment was made through the M2 NY Pioneer Fund II.

As of March 31, 2019, the New York Common Retirement Fund was valued at $210.5 billion, according to its website.

Action Item: read the full New York Common disclosure report for November 2019 here.