Connecticut commits to Palladium(2)

The $24bn retirement system also recently committed to Court Square Capital Partners, TPG Credit and Clearlake Capital.

The Connecticut Retirement Plans and Trust Funds has committed up to $20 million to Palladium Equity Partners IV.

Fund IV has an $800 million target and held a first close on about $195 million last July, according to documents filed with the US Securities and Exchange Commission. Palladium Equity Partners focuses on mid-market companies that are positioned to capitalise on the fast-growing US Hispanic market, “which is growing almost twice as fast as the non-Hispanic population”, according to pension documents. Palladium invests in business services, financial services, consumer and retail, food and restaurants, healthcare, industrial manufacturing, media and entertainment and telecommunication companies.

The firm’s Fund III collected $520 million in 2006 before reopening fundraising to existing limited partners at the end of 2007 and collecting an additional $255 million by mid-2008. Fund III had generated a 17.1 percent net IRR as of 9 January and had realised $508 million – 79 percent of the fund – as of 30 June 2012, according to pension documents.

Connecticut also recently approved a $50 million commitment to Court Square Capital Partners III.

Court Square is targeting $3 billion for its latest offering, which will invest in buyouts in the US mid-market, according to presentation documents made available by Connecticut. Fund III had reportedly raised at least $2 billion as of July.

Connecticut previously committed $100 million to Court Square Capital Partners II in 2006, which had generated a 1.3 times net multiple on invested capital and a 9.7 percent net IRR as of 9 January.

Last year, the retirement system committed $50 million to TPG Credit Strategies II and $40 million to Clearlake Capital Partners III.

Connecticut Retirement Plans and Trust Funds manage total assets of $24 billion, as of 30 June 2012.