The Florida State Board of Administration committed $350 million to three private equity funds during this year’s second quarter, according to a statement from the pension fund.
Florida committed $200 million to KPS Special Situations Fund IV and $75 million to The Riverside Company’s Capital Appreciation Fund VI. The retirement system also made one growth fund investment, committing $75 million to Insight Venture Partners’ eighth vehicle. Cambridge Associates and Hamilton Lane were the consultants for the commitments.
KPS Capital Partners closed its fund earlier this year on its “self-imposed” hard-cap of $3.5 billion. The firm spent only 10 weeks on the fundraising trail and beat its $3 billion target. During its seven-year investment period, the fund will focus on the distressed and turnaround investments in North America’s manufacturing sector. Other limited partners in Fund IV include the Illinois State Board of Investment and the Teachers’ Retirement System of Louisiana, according to Private Equity International’s Research and Analytics division.
Riverside’s latest Capital Appreciation Fund had raised about $1.3 billion toward a $1.5 billion target and hard-cap as of 13 May, PEI previously reported. The fund will invest in North American businesses that have earnings before interest, tax, depreciation and amortisation between $5 million and $25 million.
Insight Venture Partners closed its Fund VIII on $2.57 billion in May after a three month-long fundraise. The fund beat its $2.4 billion target. Insight focuses on expansion stage and mid-market companies in media, technology and telecoms sectors.
Florida SBA has $165 billion of assets under management as of Wednesday, a spokesperson from the board told PEI. Florida has a 5 percent target allocation to private equity and about a 4 percent actual allocation, or $6.9 billion, as of 31 May.