Pine Brook collects $2.2bn for Fund II

The firm has already invested about $258m from Fund II in five investments.

Pine Brook Capital Partners has collected $2.2 billion for its second growth equity fund, according to documents from the New Mexico Educational Retirement Board’s board meeting last week.

Pine Brook Capital Partners Fund II launched in 2012 with a $2 billion target and a $2.5 billion hard-cap. The fund is expected to hold a final close before the end of the first quarter 2014.

Pine Brook declined to comment.

About 50 percent of Fund II’s capital comes from pensions, including New Mexico Educational, which committed $50 million. Pine Brook represents New Mexico Educational’s first investment of the year. In 2014, the $10 billion pension plans to commit roughly $175 million to private equity.

Other limited partners in Fund II include the General Electric Pension and the Nebraska Investment Council, according to pension documents. The fund also received 15 percent of its capital from family offices and 12 percent of its capital from endowments, including the University of California Board of Regents.

The commitment to Pine Brook represents a new relationship for New Mexico Educational, according to Steven Neel, the pension’s deputy chief investment officer.

“We like investing alongside Howard,” Neel said. “The way they deploy capital creates very low leverage. It’s almost like a venture model.”

Pine Brook focuses on the financial services and energy sectors, specifically oil and natural gas exploration and production, transportation and storage infrastructure.

Pine Brook has already deployed about $258 million from Fund II via five investments. The firm acquired a 35 percent stake in oil and gas company Elevation Resources for $29 million and acquired a 7 percent stake in insurance company Global Atlantic Financial Group for $100 million.

Pine Brook’s debut fund closed on $1.43 billion in April 2009 and was generating a 16.5 percent net internal return rate and a 1.44 return multiple of as of 31 March, according to documents from the Oregon Public Employees’ Retirement Fund.

New York-based Pine Brook was founded in 2006 by Newman, who previously spent 22 years at Warburg Pincus, according to the firm’s website.