Sunshine State shines bright in Q3, commits more than $500 mln to PE: CORRECTED

  • Florida SBA committed to 6 PE funds
  • Backs two Inflexion funds
  • ABRY, Hellman, others feel warmth

The board, which manages the investments of the $149.4 billion (as of Aug. 31) Florida Retirement System, committed 33 million pounds ($53.2 million) to Inflexion buyout Fund IV and 17 million pounds ($27.4 million) to Inflexion Partnership Capital Fund I. Inflexion Private Equity is a U.K.-based firm that sponsors middle-market buyouts and makes minority investments (see accompanying table for details).

The system committed another $425 million combined to funds from ABRY Partners, Charlesbank Capital Partners, Hellman & Friedman, and Rubicon Technology Partners.

In addition to PE funds, Florida committed a combined $220 million to a venture capital fund of funds, early stage VC fund and a drug royalty fund. The system also made numerous commitments to real estate and hedge funds, bringing its total investment activity to more than $2 billion.

In Q2, Florida put about $872.5 million into alternative investment funds, including about $622.5 million for private equity. It made about $625 million in commitments to private equity funds in the first quarter.

Florida’s private equity and venture capital portfolio is valued at around $8.4 billion.

Earlier this year, Florida SBA hired Wesley Bradle from the California Public Employees’ Retirement System as a senior portfolio manager on the private equity team.

Private equity portfolio manager Melissa Griffin left Florida SBA earlier this year to join the Georgia Division of Investment as a private equity analyst. Florida SBA ran a search for a replacement for Griffin, but wound up promoting existing staffer Reid Hanway to Griffin’s portfolio manager position, according to system spokesman John Kuczwanski.

Florida SBA also transferred Lucy Reams from the governance unit to the private equity team to take over Hanway’s role as senior investment analyst, Kuczwanski said.

Q3 commitments by Florida SBA      
Firm name Fund name Fund type Commitment $Mln Notes
Inflexion Private Equity Inflexion Buyout Fund IV Middle-market buyout $53.20 (33 mln pounds) Closed on 650 mln pounds
Inflexion Private Equity Inflexion Partnership Capital Fund I Mid-market minority stakes $27.40 (17 mln pounds) Closed on 400 mln pounds
Hellman & Friedman Hellman & Friedman Capital Partners VIII Big buyout $200.00 Nearly closed on $10.25 bln hard cap
Silicon Valley Bank SVB Strategic Investors Fund VII Venture capital fund of funds $125.00 N/A
Charlesbank Capital Partners Charlesbank Equity Fund VIII Middle-market buyout $100.00 Closed on $1.75 bln
ABRY Partners ABRY Partners VIII PE for media, comm and business serv. $75.00 Targeting $1.9 bln
Healthcare Royalty Partners Healthcare Royalty Partner III Drug royalties $65.00 Closed on $1.5 bln
Rubicon Technology Partners Rubicon Technology Partners Lower mid-market buyout $50.00 Targeting $250 mln
Openview Venture Partners Openview Venture Partners IV Early stage venture capital $30.00 Closed on $250 mln
Total     $725.6.00  
Source: Florida SBA        

(Correction: The Florida State Board of Administration committed 33 million pounds ($53.2 million) to Inflexion Buyout Fund IV and 17 million pounds to Inflexion Partnership Capital Fund I. The numbers originally provided by Florida for this story were incorrect, and both the headline and story have been updated throughout to reflect this correction. Also, Florida committed a combined $220 million to a venture capital fund of funds, early-stage VC fund and a drug royalty fund in Q3. In the original story the word “million” was missing.)