The New Hampshire Retirement System has committed $150 million to The Carlyle Group and $50 million commitment CCMP Capital Advisors, according to minutes from the system’s board meeting last week.
The $7 billion system committed $150 million to Carlyle over a multiple year period to invest in emerging markets including Africa and South America and developed Asia. It is understood that the commitment will be structured as a separately managed account. Carlyle co-chief executive officer David Rubenstein told New Hampshire Carlyle doesn’t anticipate deploying any capital in India because it is a “complicated area to invest in”. Carlyle also does not expect to invest in Argentina over the next few years, but sees significant potential in undermanaged Japanese companies, according to the minutes. New Hampshire’s commitment will also make co-investments alongside Carlyle.
Carlyle is in market with its $3.5 billion Asia buyout fund and a $1 billion Japan fund, both of which are expected to close this year, Rubenstein said during an earnings call last week.
“Those funds are doing pretty well in the market and I would expect this year they would close at or around their target area,” Rubenstein said.
New Hampshire also committed $50 million to CCMP Capital Investors Fund III, a 2013 vintage fund that is targeting $3.5 billion, according to Private Equity International’s Research and Analytics division.
Fund III had raised $1.7 billion as of October. Limited partners in Fund III include The Montana Board of Investments and the Canada Pension Plan Investment Board, according to PEI data. About 5 percent of Fund III’s total capital has come from CCMP’s owners, Jonathan Lynch, CCMP managing director and investment committee member, told New Hampshire at last week’s board meeting.
CCMP focuses on upper mid-market buyouts growth equity investments in the consumer, industrial, energy and healthcare industries. CCMP has sealed a number of exits during the fundraising process for Fund III, including healthcare contract research organization Medpace for $915 million and UK-based vacuum equipment maker Edwards Group for about $1.6 billion, PEI reported. Fund III will invest in between 12 and 15 companies, according to the New Hampshire documents.
CCMP declined to comment.
New Hampshire also withdrew a $20 million commitment to venture debt fund Lighthouse Capital Partners VIII because the fund has not held a first close and the investment committee isn't confident Lighthouse will have a closing, a New Hampshire spokesperson wrote to PEI in an email. New Hampshire made the commitment in August 2012. Lighthouse provides debt and equity financing to healthcare and technology companies. Lighthouse’s prior fund, a 2011 vintage, had a $275 million target, according to PEI data.
Lighthouse was unavailable to comment at press time.
New Hampshire has a 15 percent target allocation to alternatives.