The $58 billion Washington State Investment Board recently pledged up to $400 million to Latin American buyouts and a health care and technology fund.
Southern Cross Latin America Private Equity IV LP received a commitment of up to $100 million, and GTCR Fund X LP got a pledge of up to $300 million, a spokeswoman said.
Southern Cross Group is seeking $1.25 billion for Fund IV, earmarked for five to 10 equity investments of $125 to $300 million in mid-market to large-cap companies throughout the Latin American region. GTCR Golder Rauner LLC intends to raise $3 billion for its tenth fund, earmarked for investments in health care, financial technology and services, and information technology and services.
The pension system’s actual private equity allocation stood at 25.8 percent as of June 30, only a tad above its target allocation of 25 percent, but well within the allowable range of 21 percent to 29 percent. Almost two-thirds of Washington State Investment Board’s private equity portfolio is in buyouts, with the rest in international, venture capital and distressed funds. The pension has investments with more than 100 private equity managers and uses Capital Dynamics Inc. as its consultant for the asset class.
The state has committed to at least four GTCR funds, including the 2000-vintage Fund VII, which, as of March 2010, had an IRR of 25.2 percent and a total value multiple of 2.44x.