Montana commits $55m to private equity

The board made an additional commitment of $5m to White Deer Energy’s Fund II after committing $20m in January.

The Montana Board of Investment committed $55 million to private equity in September, according to documents from Montana’s November board meeting.

Montana invested an additional $5 million to White Deer Energy’s Fund II through a secondary acquisition.  

In January, Montana committed $20 million to the fund. The board’s initial commitment of $30 million was scaled back due to fund popularity from returning limited partners. 

White Deer Energy Fund II closed on its $1.27 billion target in March, beating its $800 million target according to Private Equity International’s Research and Analytics division. About 0.8 percent of Montana’s $20 million commitment has been called. The Indiana Public Retirement System is also a limited partner in the fund. White Deer Energy’s debut fund collected $822 million in 2009, exceeding its $750 million target.

Montana also committed $25 million to Pine Brook Capital Partners’ Fund  II, a growth equity fund focusing on energy and financial services, and $25 million to HCI Equity Partners’ Fund IV. 

Pine Brook Capital Partners II launched last year with a $2 billion target. Having received commitments from pensions including the Kansas Public Employees Retirement System and the New Mexico State Investment Council, Fund II had collected about $1.27 billion as of September, according to PEI data. 

HCI Equity Partners IV has a $300 million target. Fund III closed on $192 million in 2010, though it missed its $250 million target, PEI data disclosed. HCI Equity also manages three buyout funds under the name Thayer Equity Investors. The firm invests in growth-oriented industrial product and service companies, according to its website. 

Montana has a $1.7 billion total exposure to private equity, which includes buyout, co-investment, distressed, mezzanine, special situations and venture capital strategies. About 57 percent of the private equity portfolio is invested in buyouts, followed by about 20 percent to venture capital, as of 30 June. The majority of the investments are made in the US and Canada. The investment board has $8.2 billion of assets under management, according to the meeting documents.