Orange County Slates $110M For Re-Ups With Funds Of Funds

By
Brad Meikle
-

The $8 billion Orange County Employees Retirement System is keeping the faith in funds of funds.

The pension program’s private markets committee recently recommended a $50 million commitment to Adams Street Partnership Fund Program 2009, although final approval from the full board of retirement is still required, according to Robert Kinsler, spokesperson. That review would likely take place later in the fall. Meantime, board approval has been secured for a $60 million pledge to Mesirow Financial Private Equity Partnership Fund V. Both mark re-ups.

Chicago-based Adams Street Partners started raising funds for its 2009 global program in March and is targeting $2 billion; it intends to close the vehicle in December. The fund of funds would be invested 60 percent in the United States; 30 percent in non-U.S. developed markets; and 10 percent in non-U.S. emerging markets.

Mesirow Financial Private Equity Partnership Fund V has a $1 billion target. Venture capital and buyout funds would compose 35 percent each of total committed capital. Special situations is slated to receive 15 percent of capital, while international investments, primarily in Western European-based, middle-market private equity funds, would receive the remaining 15 percent. Chicago-based Mesirow Financial raised $900 million for Mesirow Financial Private Equity Partnership IV LP.

Orange County believes the funding of the private equity program should continue at the same annual commitment pace of $150 million to achieve vintage year diversification, said Kinsler. The pension fund has a 5 percent target allocation to alternative investments, but only a 2.18 percent actual allocation, as of June 2008. Alternative investments may include venture capital, corporate finance, buyouts, energy, oil and gas. The LP has previously backed GTCR Golder Rauner’s GTCR Fund VII/A LP; Madison Dearborn Partners’s Madison Dearborn Capital Partners IV LP; and Providence Equity Partners’s Providence Equity Partners IV LP.

Orange County previously pledged $60 million to Mesirow Financial Private Equity Partnership Fund IV and has also committed to Adams Street 2008 Direct Fund, Adams Street 2008 Non-U.S. Fund, Adams Street 2008 U.S. Fund, Adams Street 2007 U.S. Fund, and Adams Street 2007 Non-U.S. Fund.