Louisiana Teachers’ commits $100m to PE

The $13.1bn retirement system continued its spree of private equity commitments at its first meeting of 2012, allocating $50m to both Energy Capital Partners and Apollo Global Management.

The Teachers’ Retirement System of Louisiana has committed $50 million each to Energy Capital Partners Mezzanine Opportunities Fund and Apollo European Principal Fund II, according to chief investment officer Philip Griffith.

The $13.1 billion retirement system has been an active investor recently, committing $50 million to both Platinum Equity and Leonard Green & Partners at its December board meeting and $200 million across three funds in September. As of 31 October, Louisiana Teachers’ has a 13 percent allocation to the asset class, well over its 10 percent target. 

Apollo Global Management’s second European principal fund has already received $100 million in commitments from Teachers’ sister pension, the $9.2 billion Louisiana State Employees’ Retirement System. Apollo launched the European Principal Finance fund series in 2007 to focus on loans held by European financial institutions that are in default on principal or interest payments for 90 days or more. As of 30 September, the operation had more than $1.7 billion under management, according to Apollo’s website.

The fund’s predecessor, which raised $1.4 billion in 2008, was generating a 6.7 percent net internal rate of return and a 1.1x return multiple as of 30 June, 2011, according to California Public Employees’ Retirement System documents.

Energy Capital Partners is targeting $500 million for its mezzanine opportunities fund, which launched last year, according to US Securities and Exchange Commission documents. ECP closed its second flagship fund on $4.3 billion in 2010, well over its $3.5 billion target. The fund was generating a 15.75 percent IRR since inception as of 31 March, 2011, according to the California State Teachers’ Retirement System.

The firm did respond to requests for comment.