Louisiana Teachers’ commits $125m to CVC Capital

The state’s $14.9bn retirement system approved the commitment to CVC’s sixth fund last week.

The Teachers’ Retirement System of Louisiana committed $125 million to CVC Capital Partners’ Fund VI, which is targeting about $12.2 billion.

UK-based CVC Capital declined to comment.

The $14.9 billion Louisiana pension fund allocates 11 percent of its assets to private equity, as of 30 April, according to its website. The system has a target allocation to private equity of 13 percent.

Earlier this year, the fund changed its investment policy to include alternative asset investments to emerging markets separate accounts. As of last August, the pension fund only invested in separate accounts for real estate assets. 

Recently, the fund committed $75 million in re-ups to both American Securities Opportunities Fund III and Providence Equity Partners’ Debt Opportunity Fund III, Private Equity International reported in April. Louisiana Teachers’ also has made commitments to Apollo Investment Fund VIII and Kohlberg & Company’s Fund VII, PEI reported earlier. The pension fund’s private equity programme began in 1995.
CVC Capital’s target is lower than the $14.1 billion its fifth fund, a 2008 vintage, raised, according to the firm’s website. The majority of each fund’s investors have come from the US. CVC Capital has invested in North American, European and Asian companies since it was founded in 1981, according to the firm’s website.