Firms & Funds

West Virginia backs Advent flagship for up to $50 mln

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Unemployed coal miners Todd Hatfield (L) and Dave Houck talk at Hatfield's bar and restaurant in Gilbert, West Virginia May 22, 2014. With coal production slowing due to stricter environmental controls, the availability of natural gas and a shift to surface mining, the state's coal country has been hit hard with job losses and business closures. Picture taken May 22, 2014. REUTERS/Robert Galbraith (UNITED STATES - Tags: BUSINESS COMMODITIES ENERGY EMPLOYMENT SOCIETY) ATTENTION EDITORS - PICTURE 23 OF 27 FOR WIDER IMAGE STORY 'DECLINE ALONG 'THE KING COAL HIGHWAY'' SEARCH 'GALBRAITH COAL' FOR ALL IMAGES - RTR4A30O
  • West Virginia backs Advent, PineBridge credit fund
  • Investment board re-ups with Franklin Park funds of funds
  • $1.4 bln PE portfolio nets 15 pct five-year return

The West Virginia Investment Management Board committed up to $150 million to private equity and venture capital at its February 2 meeting, administrative assistant Jo Ann Harrison told Buyouts.

West Virginia has yet to finalize its commitments, Harrison said.

The board, which manages $17.2 billion of state retirement system, insurance and endowment assets, committed up to $50 million to Advent International’s latest flagship fund. Advent set a $12 billion target for the global buyout vehicle.

West Virginia is a limited partner in Advent’s sixth flagship fund, a $10.4 billion 2008 vintage, which netted a 19.5 percent internal rate of return and 2x multiple through June 30, according to the California Public Employees’ Retirement System.

West Virginia also committed up to $40 million to PineBridge Investments’ third structured capital fund, which will provide non-control junior capital to mid-market companies.

Data provider Bison reports PineBridge Structured Capital Partners III as having a $245 million target, though that could not be confirmed at press time. The firm did not respond to a request for comment.

The board also re-upped $30 million each to a pair of Franklin Park Associates funds of funds: Franklin Park Venture Fund Series 2016 and Franklin Park International Fund 2016.

West Virginia’s legislature first allowed the investment board to invest in private equity in 2007. The portfolio has since grown to approximately $1.4 billion and counts The Carlyle Group, Odyssey Investment Partners, The Riverside Companies and Thoma Bravo among its fund managers, according to a summary of its investment holdings.

West Virginia’s private equity portfolio netted a 15 percent five-year return through June 30, according to its most recent annual report.

Action Item: For a summary of West Virginia’s portfolio, visit http://bit.ly/1RaFoiC