Florida commits $665m to private equity and credit

The system committed to TowerBrook, SVB Capital, Bayview and Levine Leichtman, continuing on its investment pace as one of the most active alternative investors in the market.

The Florida State Board of Administration has committed $665 million in the first quarter to both private equity and credit-related strategies, according to an investment summary provided by the institution.

Florida committed $190 million to TowerBrook Investors IV in February, which closed on its hard-cap of $3.5 billion that same month. The pension administrator committed $125 million to SVB Strategic Investors VI-B, a venture capital fund of funds targeting $300 million.

Florida also made commitments to what it calls its strategic investments asset class, pledging $150 million to Bayview Opportunity Fund IIIB, which targets mostly distressed real estate debt, and $200 million to Levine Leichtman Capital Partners V, targeting $1.5 billion for mezzanine investments. As of late March, Fund V had collected $361.8 million, according to a filing with the US Securities and Exchange Commission.

Florida has kept up its active alternatives commitment pace throughout the year. The board reported earlier this year that it had pledged $1 billion to an array of alternative investment strategies, including committing $100 million each to Silver Lake’s fourth fund, Lexington Partners’ Middle Market Investment III, targeting $750 million and EnCap Energy Capital Fund IX, targeting $4.25 billion.

The system is on pace to commit at least $2 billion to alternatives in fiscal year 2013, which started in June. In 2012, Florida adopted a pacing schedule that would have it committing about $6 billion to alternative investments in three years.

Florida’s private equity and strategic investments portfolios are run by Trent Webster, senior investment officer – strategies investments and private equity, and John Bradley, director of private equity.