Firms & Funds

New York State pledges to MBK for first time

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New York State Common Retirement Fund, pension fund, private equity
New York Comptroller Thomas DiNapoli (left) is sworn in by Chief Judge Jonathan Lippman during a ceremony at the Capitol in Albany, New York, on Jan. 1, 2011. Photo courtesy Reuters/Mike Groll - RTXW5AS
  • Commitment marks New York’s third new relationship of 2016
  • MBK raised $4.1 bln through Fund IV
  • New York State’s PE portfolio valued at almost $14 bln

New York State Common Retirement Fundsolidified a new relationship with a private equity general partner in November when it committed $50 million to MBK Partners Fund IV, a $4.1 billion raised by MBK Partners.

MBK Partners will use Fund IV to acquire companies in Korea, Japan, China and Taiwan, a New Jersey State Investment Council memo showed. New Jersey pledged to commit $100 million to the fund in November.

MBK’s third fund closed on $2.7 billion in 2013 and was netting a 6.6 percent IRR as of June 30, according to a New Jersey investment memo. A 2008 vintage fund was netting a 20.8 percent IRR as of that date.

The firm has offices in Hong Kong, Shanghai, Seoul and Tokyo. In 2015, MBK acquired U.K. retailer Tesco’s South Korean arm for $6 billion. The Fund III portfolio also includes Doosan Machine Tools, a South Korean machinery producer.

The commitment marks the third new PE relationship NYS Common Retirement Fund formed in 2016. Earlier last year, the $178.6 billion retirement system secured allocations in funds managed by IK Partners, a European buyout specialist, and Thoma Bravo, which is best known for its investments in software companies.

New York State Common Retirement Fund held almost $14 billion of its assets in PE as of March 31, 2016. The portfolio had generated a 10.77 percent 10-year annualized rate of return as of that date.

Action Item: For more about New York State Common Retirement Fund, visit www.osc.state.ny.us