Florida SBA commits $220m to private equity

  The $143.3bn pension system formed one new private equity relationship during the quarter.  

The Florida State Board of Administration committed about $220 million to private equity during the fourth quarter of 2013, according to a statement.

Florida committed €73.8 million ($100.8 million; £61.4 million) to Permira Advisers’ fifth fund, which is targeting between €4 billion and €5 billion. Fund V held a first close on €2.2 billion in April, after roughly 19 months of fundraising. The amount raised includes a €200 million general partner commitment, Private Equity International previously reported. Florida previously committed to Permira’s Fund IV, which had an original target of about €11.1 billion before revising the fund down to about €9.6 billion.  

Florida also committed $100 million to New Mountain Capital’s Fund IV, which is targeting $3 billion and has raised $320 million. Fund IV has received commitments from limited partners such as the Teachers’ Retirement System of Illinois and the Nebraska Investment Council.  Florida previously invested in New Mountain’s $5.12 billion Fund III and $1.57 billion Fund II, according to PEI’s Research and Analytics division. The firm focuses on companies in the healthcare, technology, support services, media, consumer and banking sectors in North America and invests between $100 million and $500 million per deal.

Florida also added a new general partner relationship, making its first investment with Atlas Holdings by investing about $20 million in Atlas Capital Resources Fund II. The vehicle closed on its $900 million hard-cap in December, after four months of fundraising. Fund II had a $650 million target and about half the fund’s LPs were new investors, according to a statement from the firm. Atlas invests in companies throughout North America, Europe, Asia and Australia in industries such as building materials, energy, industrial services, packaging and steel, according to its website.

Florida also invested $275 million in two real estate-focused funds and $350 million in three strategic investment funds during the fourth quarter.

Florida allocates 5 percent of its assets to private equity, but plans to discuss 2014 allocation targets at its next board meeting, according to a spokesperson from the board. The pension system has $143.3 billion of assets under management.

Correction: An earlier version of this article incorrectly stated that New Mountain Capital is targeting $320 million for its Fund IV. The firm’s Fund IV has a $3 billion target. The article also incorrectly listed the final close amounts for New Mountain’s Fund III and Fund II. Fund III held a final close on $5.12 billion. Fund II held a final close on $1.57 billion. PEI regrets the errors.