PSERS pledges $350m in re-ups

In addition to commitments to Blue Point Capital Partners III and Catterton Partners VII, the $49.7bn retirement system also re-upped $200m to LLR Equity Partners IV.

The Pennsylvania School Employees’ Retirement System re-upped $350 million to private equity at its meeting last week.

The commitments included $50 million to Blue Point Capital Partners III, $100 million in Catterton Partners VII and $200 million toLLR Equity Partners IV, according to its website.

Blue Point is targeting $400 million for its third fund with a $500 million hard-cap, according to pension system documents. The fund will invest $10 million to $40 million per deal in companies with $20 million to $200 million in revenues. The firm will focus on companies headquartered in the US Midwest, Southeast and Pacific Northwest.  

As with its previous funds, Blue Point will invest primarily in the energy and environmental services, engineered components, industrial outsourcing, metals and plastic processing and specialty distribution sectors. The firm’s last fund, a $400 million 2005 vintage, was generating a 1.3x multiple and 10 percent internal rate of return as of 31 March, 2011, according to PSERS documents. 

Catterton’s seventh fund will target between $1.2 billion and $1.5 billion for control investments in the North American consumer sector. Fund VII will make between 15 to 18 investments through the fund, investing between $30 million and $120 million in equity per deal. Within the consumer sector, Fund VII will focus on branded consumer products, retail and restaurants, food and beverage, as well as consumer and marketing services, according to PSERS documents.  

PSERS has invested $305 million across three previous Catterton funds, including $130 million to Fund VII’s predecessor, which was generating a 9 percent net IRR and 1.3x multiple as of 31 December, according to documents.  

The $49.7 billion retirement system also re-upped $200 million to LLR Equity Partners IV, a lower mid-market specialist fund targeting $800 million with a $1 billion hard-cap. Fund IV will invest in the business services, consumer services, financial services, healthcare services and software/IT sectors, typically in companies with less than $100 million in revenues.  

LLR’s third fund, a 2008 vintage, was generating a 1.2x multiple and 14.1 percent IRR, according to PSERS documents.