NPS, KIC back BC Partners’ tenth fund

The two largest South Korean investors have committed around €360m to the London-headquartered firm’s latest vehicle.

South Korea’s National Pension Service (NPS) and sovereign wealth fund Korea Investment Corporation (KIC) have invested around €360 million in the latest vehicle of pan-European buyout firm BC Partners.

NPS is committing €210 million to BC European Capital X according to a source close to the fundraising. Meanwhile KIC’s commitment to the fund is €150 million, according to sources cited by The Korea Economic Daily.

BC Partners declined to comment. NPS and KIC could not be reached for comment.

BC Partners started raising capital for its tenth fund in January last year with a target of €7 billion. The firm has raised €4 billion so far, according to PEI data.

Investors in the fund include the Tennessee Consolidated Retirement System which committed $200 million and the Teachers’ Retirement System of Louisiana which invested $76 million. The Los Angeles Fire & Police Pension System and the Los Angeles City Employees’ Retirement System also committed $40 million and $26.5 million, PEI data indicated.

BC Partners collected €6.7 billion for its previous fund, 2010-vintage vehicle BC European Capital IX, in which NPS and KIC are also investors. That fund had generated an internal rate of return of 8.75 percent for CalSTRS as of March 2016 since inception, according to the pension fund’s last published private equity fund performance figures.

The firm, which specialises in large-cap European buyouts, recently invested in 22 Priory Group hospitals, plastic manufacturer Keter Group, and Italian restaurant chain Cigierre.

In July 2015, KIC invested $100 million in Phoenix-based pet supplies and services retailer PetSmart as part of a takeover led by BC Partners. Singapore sovereign wealth fund GIC also teamed up with KIC and BC Partners on the investment.