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Pennsylvania PSERS returns to Lindsay Goldberg, commits to fifth fund

  • Assets under management: $56 bln
  • Private markets allocation: 14.2 pct
  • Whom to contact: Evelyn Tatkovski Williams (evwilliams@pa.gov)
  • Why this is important: PSERS returns to Lindsay Goldberg after 17 years

Pennsylvania Public School Employees’ Retirement System committed $150 million to Lindsay Goldberg’s fifth fund, which is targeting $4 billion.

The system last committed $300 million to the New York private equity firm’s first fund, Lindsay Goldberg & Bessemer’s Fund I, in 2001.

Lindsay Goldberg makes control investments in middle-market family-owned or entrepreneur-led companies in industrial, services, healthcare and consumer industries in North America and Western Europe.

Its investments include Big Ass SolutionsBrock GroupMBI Energy Solutions and Stelco.

Lindsay Goldberg’s Fund V will make 12 to 15 acquisitions, pension documents said.

Like its predecessors, the fund will invest $150 million to $500 million in equity through initial or multiple investments in companies with enterprise values between $225 million and $1.3 billion.

Lindsay Goldberg’s fourth fund raised $3.5 billion and acquired companies at an average purchase-price multiple of 7.5x, almost 3x less than the PE average. Leverage levels across its portfolio companies were 40 percent lower than the PE industry average, documents said.

Since inception, Lindsay Goldberg raised $13.4 billion across four funds and invested in 50 portfolio companies. Its most recent fund generated a net 1.7x multiple and produced an internal rate of return of 55 percent, documents said.

Fund I produced an IRR of 34.1 percent, documents said.

Founded by ex-Morgan Stanley colleagues Alan Goldberg and Robert Lindsay, Lindsay Goldberg added partners to its ranks since its last fundraising in 2015.

These include Jeffrey Bunder from Ernst & YoungStephen DeFalco from Crane & CoBrian Kelley from KeurigChristopher Laitala from H.I.G. Capital and, most recently, Jacob Lew, former U.S. secretary of the treasury.

Teachers’ Retirement System of Louisiana committed $50 million to Lindsay Goldberg’s latest fund.

About: Read more on Lindsay Goldberg here http://www.lindsaygoldbergllc.com