Texas Municipal Retirement System backed a single buyout fund from Parthenon Capital Partners at its December meeting, according to documents on its website.
The system invested up to $50 million in Parthenon Investors VI, targeting $1.5 billion. The fund plans to make 15 investments between $40 million and $125 million to companies with enterprise values of $50 million to $500 million, meeting documents show.
Founded in 1998 by a former partner at Summit Partners, Ernest Jacquet, and ex-Bain & Co consultant John Rutherford, the firm invests in the healthcare, financial services and business services industries.
Parthenon’s latest pool is aiming to be the company’s largest fund yet. Its debut fund closed with $350 million; Fund II closed at $750 million in 2001; Fund III and IV closed at $700 million each in 2007 and 2012, respectively; and Parthenon V, which closed in 2016, exceeded its $850 million target with a $1 billion close, Buyouts previously reported.
Texas Municipal’s private equity pacing is slightly behind for the year, according to meeting notes. The system has recommended and/or closed $486 million in private equity commitments for the year, down from its $525 million pacing model it set for 2019.
A few other Texas Municipal commitments for the year include: $50 million to FTV Capital’s sixth funds, targeting $1 billion; $50 million to Providence Equity Partners’ Strategic Growth Fund IV, which has a hard cap of $2 billion; and $33 million to Foundry Group’s FGN Partners Fund, targeting $100 million, according to Buyouts.
Texas Municipal’s private equity allocation is 1.6 percent on a 5 percent target, Buyouts reported.