Indiana commits $80m to private equity

The $22.2bn system, which earlier this year hired Robert Clone as its director of private equity, has committed to Vista Equity Partners IV and TSG Consumer Partners VI.

The Indiana Public Retirement System has committed $50 million to Vista Equity Partners’ fourth fund and $30 million to TSG Consumer Partners’ sixth fund.

Vista IV, which makes control investments in mid-market enterprise software companies, is en route to hitting its $3.3 billion hard-cap, a person with knowledge of the fundraising told Private Equity International in a previous interview. The firm held a third close on $2.8 billion, well over its $2.5 billion target on 11 November, the person said. Vista has added new limited partners to its fund and plans to continue trying to form new relationships to reach its hard-cap. A final closing on Fund IV could come in early 2012, the person said.

TSG Consumer Partners VI closed in late November on $1.3 billion after only 60 days in the market. The fund invests in mid-market branded consumer product companies with annual revenues between $30 million and $300 million.

TSG, which has offices in San Francisco and New York, brought back the bulk of its existing limited partners and also attracted a few new investors to the fund. As part of its fundraising, which the firm accomplished without the use of a placement agent, TSG was able to broaden the geographic make-up of its limited partner base, TSG managing director Jamie O’Hara told Private Equity International earlier this month.

Earlier this year, Indiana hired Robert Clone as director of private equity, replacing Greg Davis. Clone was previously a senior portfolio manager at the Michigan Department of Treasury.

Indiana, with approximately $22.2 billion in assets under management at the end of fiscal 2010, has invested steadily in private equity through the downturn, and has dabbled in the secondaries market, picking up small fund interests on an opportunistic basis.

Last year, Indiana committed $100 million to Lexington Capital Partners VII, which closed in July on $7 billion, attracting commitments from more than 200 investors in 20 countries for what is understood to be the largest secondaries fund ever raised.