Florida commits more than $1bn to alternatives

The $151.7bn system committed hundreds of millions of dollars to managers like Silver Lake, Lexington and Advent, but also to ‘strategic investment’ managers such as GSO.

Florida State Board of Administration committed more than $1 billion to an array of alternative investment strategies in the fourth quarter, according to an investment report from the system.

Florida, one of the most active public pension limited partners in the asset class, committed $100 million each to Silver Lake’s fourth fund, which is targeting $7.5 billion and is on track to easily hit that number; Lexington Partners’ Middle Market Investment III, targeting $750 million for mid-market secondary deals; EnerVest Energy IST FD XIII-A, reportedly targeting $2 billion and EnCap Energy Capital Fund IX, targeting $4.25 billion.

The system also pledged €80 million for Advent International’s Global Private Equity VII, which closed on €8.5 billion in November.

Florida made several “strategic investments”, including committing $200 million to GSO Capital Partners’ second Capital Solutions Fund and $60 million to ABRY Senior Equity IV, targeting $950 million. Florida also committed $300 million to IFM Global Infrastructure and $100 million to Starwood Opportunity Fund IX, targeting up to $3 billion.

The system is on pace to commit at least $2 billion 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 – strategic investments and private equity, and John Bradley, director of private equity. They replaced long-time private equity chief Jim Treanor, who stepped down in early 2012.