Minnesota re-ups $450m to PE

Minnesota’s Board of Investments granted three re-ups to private equity at its meeting Wednesday, which included commitments to Advent, Silver Lake and CarVal Investments.

The Minnesota State Board of Investment committed $450 million to private equity funds at its meeting earlier this week, executive director Howard Bicker told Private Equity International.

The $47.5 billion retirement system re-upped $200 million toAdvent International’s latest flagship vehicle, which is targeting €7 billion for investments in upper mid-market companies in the business and financial services, healthcare, industrial, retail/consumer and technology, media and telecom sectors in North America and Europe.

Minnesota had also invested in Advent’s previous fund, a €6.6 billion 2008 vintage, which was generating a total value multiple of 1.1x and a net internal rate of return of 6.88 percent as of 31 December, according to Washington State Investment Board documents.

Earlier this year, the firm was said to be en route to a final close for Fund VII at some point this quarter. Other limited partners in that fund include the California Public Employees’ Retirement System, The Washington State Investment Board, The Los Angeles City Employees’ Retirement System, the Massachusetts Pension Reserves Investment Management Board, The Ohio Police & Fire Pension Fund and The Tennessee Consolidated Retirement System.

Minnesota also committed $100 million to Silver Lake Partners IV, which is targeting $7.5 billion. Silver Lake typically invests in large-cap technology or technology-enabled companies through buyout or recapitalisation strategies. The firm’s previous vehicle was generating a 1.5x multiple and 19.7 percent net internal rate of return as of 31 December, according to CalPERS documents.

CarVal Investors’ received a $150 million commitment from the retirement system for its latest vehicle. The firm’s second fund will invest in North American mezzanine debt strategies, Bicker said. He did not know what the firm is targeting for the fund.

Minnesota had a 15.7 percent allocation to alternative assets on a 20 percent target as of 30 June, according to its website. The retirement system’s alternatives portfolio is valued at $7.4 billion.