Investors in fund III include the Los Angeles City Employees’ Retirement System (which pledged $10 million); Maryland State Retirement and Pension System ($35 million); New Mexico State Investment Council ($25 million); New York State Common Retirement Fund ($50 million); and Teachers’ Retirement System of Louisiana ($75 million).
Other limited partners in the fund include Alpinvest and the Florida State Board of Administration. Falcon Investment is contributing 2% of aggregate fund commitments.
The firm’s first fund, a $223 million 2002 vintage fund, had generated a 41.6% gross IRR and a 2.5x investment multiple, as of June 30, 2008, according to the New Mexico State Investment Council. Fund II, a $440 million 2005 vintage fund, had generated a 13.9% gross IRR and a 1.2x investment multiple.
Look for the firm to invest $10 million to $75 million of subordinated debt and equity in mid-sized companies to support their acquisitions, recapitalizations, buyouts and organic growth initiatives.
The firm, which was founded in 2000, and which has offices in Boston, Dallas and New York, is led by Managing Partners Sandeep Alva and William Kennedy, who previously worked at the mezzanine group at John Hancock Life Insurance. —Nancy Gordon
Lone Star lowers fees on some funds
Lone Star, led by John Grayken, reduced the minimum management fee it will charge in the two new funds to 0.35% from 0.75% in its previous fund, in a move to win new commitments from big investors, such as the Oregon Investment Council, the paper said.
Oregon’s board, which oversees $51 billion public-employee pension fund’s investments, recently agreed to put $400 million into two new Lone Star funds after the firm agreed to reduce its fees, the Wall Street Journal reported.
Lone Star could not be immediately reached for comment. —Reuters
Lime Rock raises $410M
Its first Lime Rock Resources fund raised $450 million and closed in 2005.
WestView wraps up second fund
served as placement agent.
Tennenbaum Capital closes $330M