Firms & Funds

South Carolina commits $75 mln to Providence

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South Carolina Retirement System Investment Commission, private equity, Providence
Vistitors check out the sights around the Angel Oak tree in Charleston, South Carolina September 24, 2013. Massive canopy shades stretching more than 17,000 square feet and a trunk wider than 25 feet in circumference have drawn generations of visitors to the centuries-old live oak tree on an island near historic Charleston. A group aiming to preserve the majestic tree for decades to come is racing against a fall deadline to raise the $1.2 million needed to protect surrounding land from development that environmentalists say would harm the oak's health. REUTERS/Randall Hill (UNITED STATES - Tags: ENVIRONMENT POLITICS) - RTR3FG1E
  • AUM: $12.7 bln
  • PE: 7.4 pct
  • PE Target: 9 pct
  • Contact: communications@rsic.sc.gov
  • Why it’s important: South Carolina re-upped its relationship with Providence growth pool

South Carolina Retirement System Investment Commission at its April meeting re-upped with Providence Strategic Growth Capital Partners.

The board committed $75 million to Providence Strategic Growth IV, which focuses on growth and small buyout investments in the software and technology sector in North America, a meeting agenda showed. The pool’s fourth fund targeted $2 billion and closed April 5.

South Carolina previously invested with Providence’s growth fund, having committed $75 million to Fund III in Q2 2018. The system also committed $150 million to Providence Equity Fund VIII.

Providence’s fourth growth fund has a five-year investment period and an 8 percent performance hurdle before the GP can start to collect its 20 percent cut of carried interest.

South Carolina’s private equity assets sit at 7.4 percent, lagging its 9 percent target allocation, as of Sept. 10, 2018, according to an annual investment report.