- 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