Firms & Funds

Washington State commits $736 mln to PE

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  • System backs Advent, Bridgepoint, Roark
  • $104.1 bln system 22.3 pct allocated to PE
  • Target allocation for system is 23 pct

The Washington State Investment Board committed roughly $736 million to private equity funds managed by Bridgepoint Capital, Advent International and Roark Capital Group at its Sept. 18 meeting, spokeswoman Liz Mendizabal told Buyouts in an email.

The investment board, which oversees roughly $104.1 billion of state retirement system assets, committed 225 million euros ($286.85 million) to Bridgepoint Europe V. Bridgepoint Capital is targeting 3.5 billion euros with a 4 billion euro hard cap for investments in European mid-market companies.

Washington committed $250 million to Advent, which is targeting $2 billion for Advent Latin American Private Equity Fund VI. Advent is raising Fund VI on the heels of a management change that saw Latin American team co-head Juan Carlos Torres take over for Ernest Bachrach. Bachrach stepped back in his role as co-head in 2012 while staying on as a managing partner, sister publication peHUB reported earlier this year.

The firm closed its fifth Latin American fund on $1.65 billion in 2010. That fund was netting a 9.5 percent internal rate of return and a 1.1x multiple as of March 31, according to the California Public Employees’ Retirement System. Fund IV, a $1.3 billion 2007 vintage pool, was generating a 13 percent net internal rate of return and a 1.6x multiple, according to CalPERS.

Roark Capital Group is targeting up to $2 billion for its fourth fund. Roark invests in the franchise, consumer products, consumer and business services, direct marketing and environmental services industries. The firm likely will invest between 40 and 60 percent of the Roark Capital Partners IV in the franchise industry, according to a Hamilton Lane report obtained by Buyouts earlier this year.

Washington is also an investor in Roark’s previous fund, which closed on $1.5 billion in 2012.

Hamilton Lane consulted on all three commitments, according to Mendizabal.

Washington had a 22.3 percent allocation to private equity as of June 30, according to its website. The retirement system has a 23 percent target allocation to the asset class.