The Nebraska Investment Council approved a $25 million commitment to Wayzata Opportunities Fund III at its meeting earlier this week, state investment officer Jeff States told Private Equity International.
Wayzata has targeted $2.5 billion for the distressed debt vehicle, according to a US Securities and Exchange Commission filing. The fund has already received commitments from several US limited partners, including Kentucky Retirement Systems, the Florida State Board of Administration, the Maine Public Employees Retirement System and the Minnesota State Board of Investment, among others.
Nebraska invested in Wayzata’s last vehicle as well, committing $15 million to Wayzata Opportunities Fund II in 2008. That fund had generated a 15.1 percent net internal rate of return and a 2.9x investment multiple as of 30 September, according to California Public Employees’ Retirement System documents.
Wayzata declined to comment.
The Wayzata commitment is consistent with the investment strategy States described in an interview with Private Equity International last month, when he indicated that Nebraska plans to make around six commitments this year. Approximately four of those commitments will likely be re-ups, he added.
“The primary focus will continue to be middle market buyout and growth,” States said. “Principally US based, but we’re still looking … for what funds that are available to give us more global [exposure],” he said.
The Council plans to invest between $140 million and $160 million in private equity in 2013. Individual commitments will likely range between $20 million and $25 million in size.
Nebraska’s investment staff also will begin researching possible future commitments to Asia-focused private equity funds, with a focus on country focused vehicles and funds of funds, States said.
The Nebraska State Investment Council manages $17.8 billion in retirement system and endowment assets, according to its website. Last year, the Council approved commitments to Beecken Petty O’Keefe Fund IV, Dover Street VIII, Accel-KKR Capital Partners IV and New Mountain Partners III.