The Teachers’ Retirement System of Louisiana has committed $50 million each to Leonard Green & Partners and Platinum Equity, chief investment officer Philip Griffith told Private Equity International.
Platinum is targeting $3.75 billion for its third fund, which launched earlier this year. The $12.3 billion retirement system is re-upping with the firm after investing its second fund, Griffith said. Fund II raised $2.75 billion in 2008.
The performance of Platinum’s previous two funds has been solid, sources indicated in an earlier story. Fund I, which closed on $700 million in 2004, was generating a gross 3.5x return on realised investments, and Fund II was producing similar results on realised investments, sources said.
Leonard Green, which has been targeting $5 billion with a $6 billion hard-cap, changed the terms on its sixth fund by increasing the amount of transaction fees it will use to offset the management fee paid by limited partners to 100 percent, according to a letter the firm sent to limited partners. The firm also changed the structure of the fund’s carried interest distribution, requiring that LPs be paid back for partnership expenses – minus the management fee – before the GP can collect profits from the fund.
The firm’s sixth fund will invest between $100 million and $500 million per transaction in the US retail, consumer product, distribution, media, business services and healthcare sectors. The GP will invest $200 million in the fund over a six year period, according to documents from the School Employees’ Retirement System of Ohio, which committed $50 million.
In August, Louisiana Teachers’ announced that it would be committing $1 billion to private assets, which include private equity, commodities, debt, real estate and infrastructure-related strategies, over the 2012 fiscal year. A month later, Louisiana Teachers committed a total of $200 million to The Blackstone Group, Kohlberg & Company and Oak Hill Advisors.