Pathway Capital Wraps F-o-F Above $600M

Pathway Capital Management has closed its latest fund of funds, reeling in a little more than $600 million, Buyouts has learned.

The Irvine, Calif.-based firm, which has more than $23 billion in assets under management, held a final close for Pathway Private Equity Fund 2008 in mid-July, securing a last round of $320 million in pledges. The initial target for the fund was $500 million.

The 2008 fund is the fifth annual co-mingled fund raised by Pathway Capital. Limited partners this time around included the pension funds of publicly-listed companies Caterpillar Inc. and PPL Services Inc. as well as the Marin County Employees Retirement Association. The LP base is entirely institutional, a source told Buyouts, comprised of corporate and public pension funds.

The shop plans to open its next co-mingled fund this month, the source said.

Pathway Capital was founded in 1991 by Douglas K. Le Bon, James J. Reinhardt, Karen Jakobi and Albert Clerc. The firm currently has a total of 32 investment professionals, including 15 senior professionals who retain complete ownership.

According to its Web site, Pathway Capital manages 34 funds with an average size of $300 million each. In addition to its co-mingled funds, the firm also operates as a captive fund-of-funds manager for institutional investors, including the Alaska Permanent Fund Corp. and the Nevada Public Employees Retirement System. Its business is split equally between the co-mingled funds and the individual discretionary accounts.

Aside from its California headquarters, Pathway Capital has offices in Rhode Island and London, as well as a strategic alliance with Tokio Marine Asset Management Co. Ltd. that gives it a presence in Tokyo.