LPs

Washington State commits $2.6 bln to private markets

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Washington, Washington State Investment Board, National Grid, Blackstone, private equity, renewable energy,
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  •  Staff made two $750 mln commitments under delegate authority, choosing Blackstone and Advent
  • Washington State approved a new partnership with Geronimo, a green-energy company owned by National Grid
  • National Grid and WSIB jointly own solar and wind projects developed by Geronimo

Washington State Investment Board committed $2.6 billion to private markets, including a two large re-ups and a new partnership with a renewable energy fund.

At its April 18 meeting, Washington reported three commitments under delegated staff authority and two partnerships that had been vetted by its private markets committee. Under delegated staff authority, Washington committed:

  •  up to $750 million to Blackstone Capital Partners VIII, a global private equity fund with a target size of more than $20 billion;
  • up to $750 million in Advent International GPE IX, which has a $16 billion target and will invest primarily in Europe and North America; and
  • up to $400 million in TA Associates’ TA XIII LP, which has a $7.5 billion target and will focus on global growth companies and small-to-medium buyouts.

The three private equity commitments were recommended by Washington State’s independent consultant, Hamilton Lane, and were implemented as part of the state’s previously-approved annual investment plan, according to a spokeswoman for the fund.

The board also approved $700 million in commitments that were recommended earlier in the month by its private markets committee.

The private markets committee had recommended a $200 million commitment to Searchlight Capital III, $2.75 billion multi-strategy fund that will pursue value-oriented investments in North America and Western Europe. The committee also recommended a $500 million commitment to Geronimo Renewable Infrastructure Partners, a North American renewable energy fund.

The Geronimo investment stems from a new partnership between Washington State and National Grid, which recently acquired Geronimo Energy. National Grid and WSIB will jointly own solar and wind generation projects developed by Geronimo. The solar and wind projects, which have long-term power purchase arrangements in place, will be operated by National Grid, and the joint venture with WSIB will have right of first offer on future projects developed by Geronimo Energy, according to a recent announcement by National Grid.

The system’s total assets are valued at $132.3 billion, with PE making up $21.3 billion of WSIB’s portfolio. The board has a target allocation was 23 percent to private equity.

Action Item: Check out Washington State’s latest private equity IRR report here https://bit.ly/2TIc2i7