LP Radar – December 2014

See the latest private equity LP updates, including allocation changes and people moves.  

24 December 

The Qatar Investment Authority named Sheikh Abdullah bin Mohamed bin Saud al-Thani as the new chief executive.

 

23 December  

Manulife Financial Corp named Roy Gori as its new CEO and President for the Asian arm.

In November, New Hampshire Retirement System approved a $75 million commitment to NGP Natural Resources fund XI. Throughout 2014, the system developed a successful private debt and private equity program with commitments to eight private equity/debt partnerships totaling $570 million.

The Spokane Employees' Retirement System approved a $6 million commitment to OrbiMed Royalty Opportunities Fund II.

 

22 December 

Korea Finance Corporation revealed that Asia-pacific, especially Korea, is still its focus for private equity investments in 2015. 

At the November 2014 board meeting Houston Municipal Employees' Pension System approved a $25 million investment in Riverstone Global Energy and Power Fund VI. 

Washington State Investment Board revealed to PEI that it had approved an up to $250 million commitment to the KSL Capital Partners IV and an up to $150 million commitment to Endeavour Capital Fund VII.

 

19 December 

Sony Life Insurance revealed that it will consider to re-up current investments just under 30 existing managers in 2015. North America and Western Europe continue to be its primary destinations.

The Boston City Retirement System announced that it was accepting proposals for a private credit opportunities mandate. The System will only consider firms that have raised $1 billion in similarly focused credit strategies with a closed-ended structure. The System is considering up to $30 million for the new venture.

The El Paso County Pension System million committed $8 million to the Linden Capital Partners III, pending legal review.

 

18 December 

South African pension fund Public Investment Corporation appointed Daniel Matjila as executive director and CEO, effective December 1.

Kuwait Investment Office disclosed to PEI that it invests in European private equity funds raising up to $2 billion. These funds are primarily buyouts but it is also open to backing mezzanine, distressed debt, venture capital and secondary funds.

It was announced that Chris Schelling would be joining the Texas Municipal Retirement System in January as its first Director of private equity. He is currently the deputy chief investment officer and director of absolute-return strategies for the Kentucky Retirement Systems. 

 

17 December 

Asahi Mutual Life Insurance Company told PEI that it has no plan to invest in private equity in the near future due to liquidity reason.

The Senior Investment Officer at Misland Capital told PEI that its strategy in the New Year is to invest in global funds using buyout and venture capital strategies. The investment firm invests in funds, secondaries and directly. 

The appetite for Morgenthaler in the future is to invest in private equity directly. The company no longer invests in funds.

 

16 December 

Development Bank of Japan revealed that it still prefers Japanese buyout and distressed funds in 2015 but other indirect strategies, direct, secondary direct and co-investment opportunities will also be considered. Only local first time mangers will be considered.

In December, the New Mexico Educational Retirement Board revealed to PEI that it approved a $40 million commitment to the Ares Special Situations Fund IV. This makes the fourth investment with Ares for the Board.

 

15 December 

Korea Teachers Credit Union expressed that it is difficult to find good opportunities in Korea and it will continue to look for alternative investments in overseas matured markets, including North America, Western Europe and Australia.

The London Waste and Recycling Board revealed to PEI that it is considering an investment into a venture capital fund in the next financial year. The fund will focus on the waste sector, either energy or clean technology-related, in London

In December, the Alaska Permanent Fund allocated $550 million to Dyal Capital Partners III. Additionally, the Fund approved $500 million to co-investment opportunities alongside Fund III.

 

12 December 

Cathay Life Insurance revealed that it will continue to invest around $300 million with a bite size of $15 to 20 million in private equity in 2015. It is seeking opportunities in OECD matured markets especially Europe and North America and has no intention to increase allocation in emerging markets. 

The Teachers' Retirement System of the State of Illinois approved a €100 million commitment to the buyout fund Rhone Capital V. The system made a commitment of up to €50 million to Rhone Capital's previous vehicle in January 2012.

 

11 December 

Japan Asia Investment Company revealed to PEI that it has no specific target amount or target number of funds in 2015 but it will continue to look towards opportunities in China, Japan and South East Asia.

In December it was announced that Thomas F. Brier was named permanent chief investment officer of the Pennsylvania State Employees' Retirement System. He had served as acting CIO since he was appointed the position in March, replacing Anthony S. Clark, who resigned in December 2013.

 

10 December 

AustralianSuper told PEI that it will continue to consider investment opportunities globally including Middle East and Latin America through buyout or growth funds in 2015 and will not invest in debt or mezzanine funds.

On 8 December, Pennsylvania PERS approved two private equity funds commitments totalling $450 million. $250 million was committed to Carlyle Energy Mezzanine Opportunities Fund II and $200 million to Avenue Energy Opportunities Fund.  

Teachers' Retirement System of Louisiana confirmed that it approved a $100 million commitment to the Abraaj Separate Account.

In December, it was revealed that Wesley Machida, the executive director of the Employees' Retirement System of the State of Hawaii, is stepping down to become the state's director of finance. He will begin his new position on 27 December.

 

9 December 

According to the agenda for its investment committee meeting held on 8 December, Florida SBA currently allocates 5% of total private equity investments to secondaries, with a target range of 10-30%. In the third quarter of this year, Florida SBA committed $1.38 billion to eight private equity funds.

In December, the California State Teachers' Retirement System revealed that it had committed over $800 million to private equity between the months of July and September. The largest commitments include $200 million each to Hellman & Friedman Capital Partners VIII and the First Reserve Fund XIII.

 

8 December  

In a conversation with PEI, the Chief Investment Officer of the Employees' Retirement System of the State of Hawaii revealed that it is considering up to $350 million in commitments in 2015 for the asset class. The System expects to deploy capital to as many as ten funds with Hamilton Lane in charge of managing those allocations. 

The San Francisco Employees' Retirement System is considering increasing its allocation to private equity from 16 percent to 21 percent. The System will vote on its new allocations, which also include a first-time allocation of two percent to infrastructure, at its February 11 meeting next year. 

 

4 December  

On 4 December 2014, Kentucky Retirement Systems approved two private debt commitments totalling $100 million. A $60 million commitment to BDCM Opportunity Fund IV and $40 million to Ares Special Situations Fund IV were both ratified according to meeting minutes of the investment committee. 

Boston City Retirement System is looking to make its first private equity investment into Asia through a fund of funds vehicle. It typically commits between $10 and 20 million to funds. In addition, it will look to increase its exposure to North American private equity. The retirement system recently backed Lexington Capital Partners’ eighth secondaries fund.   

In a conversation with PEI, the Executive Director of the Illinois State Board of Investment revealed that the pension has committed $15 million each to Franklin Park Venture Series 2015 and Franklin Park International Fund 2015. The investment board typically commits $25 to $30 million to four or five private equity funds per year. It is currently looking to increase its exposure to non-US and developed markets.   


 

3 December   

Oregon State Treasury announced at its December meeting that it had committed to three private equity funds in October 2014:  $100 million to Advent Latin America PE Fund VI, $200 million to Black Diamond Capital Management IV and $225 million to Francisco Partners IV. $200 million of the Francisco commitment was made via Oregon Public Employees Retirement Fund and $25 million via the Common School Fund.   

Carmen Heredia-Lopez, former Chief Investment Officer at the Chicago Teachers Pension Fund, has moved to lead the W.K. Kellogg Foundation’s investment portfolio as Director of Investments.