The $12.5 billion Louisiana Teachers’ Retirement System has committed $50 million to EnCap Energy Capital Fund VIII, which is approaching its $3.5 billion hard cap, and $50 million to American Securities Partners VI, the target of which could not be determined at press time.
EnCap has been in fundraising for about nine months, a person with knowledge of the situation told PEO in a prior interview. A final close could come by the end of January, the person said.
Louisiana had set aside $245 million to invest in private equity in fiscal 2011.
“We remain confident that we will be able to meet that expectation at this time,” Louisiana Teachers’ chief investment officer Philip Griffith said in an email.
In September 2010, Louisiana Teachers’ committed up to $35 million to Pharos Capital Partners III and up to $50 million to Providence TMT Special Situations Fund II. The pension also committed $30 million to another American Securities fund, American Securities Opportunities Fund II, in January 2010.
American Securities bills itself as one of the oldest private equity firms in existence. The firm started out in 1947 as a family office investment shop founded by William Rosenwald, an heir to the Sears, Roebuck fortune. The firm did “bootstrap” investments that eventually came to be known as leveraged buyouts.
Louisiana Teachers’ is over-weighted to private equity, with a target of 10 percent and an actual allocation of 12.4 percent.