Tennessee commits $190m to PE, VC

Advent International and Oaktree Capital Management are two of the firms that drummed up commitments from the Tennessee Consolidated Retirement System.

The Tennessee Consolidated Retirement System (TCRS) approved up to $190 million in commitments to private equity and venture capital funds, according to a statement. TCRS invested $100 million in Advent International’s seventh fund, $50 million to Oaktree Opportunities Fund IX and $20 million each to Khosla Ventures Seed B and Institutional Venture Partners XIV. 

Advent is targeting €7 billion for its fund, which will invest in the US and European upper mid-market. Fund VII, which launched earlier this year, already has secured commitments from the Ohio Police & Fire Pension Fund, the Washington State Investment Board and the Massachusetts Pension Reserves Investment Management Board. The firm’s €6.6 billion sixth fund was generating a 1.1x total value multiple and 6.88 percent net internal rate of return as of 31 December, according to Washington State documents. 

Oaktree Capital Management held a first close on $1.2 billion for its ninth opportunities fund earlier this year, the firm revealed in its first quarter earnings statement. The fund will target opportunities in the distressed debt market. The firm’s previous opportunities fund was generating a 1x total value multiple and a 4.31 percent net internal rate of return, according to Washington State documents. 

In addition to its commitments to private equity, Tennessee also committed a total of $40 million to a pair of venture capital funds being raised by Institutional Venture Partners and Khosla Ventures. Institutional Venture Partners already has closed its 14th flagship fund on $1 billion after only five months on the market. The fund will target investments in the internet, digital media, enterprise IT and mobile and communications sectors. 

Khosla’s seed-level investment strategy typically invests in the technology sector. The firm was founded in 2004 by Vinod Khosla. 

TCRS received approval to invest up to 5 percent of its assets in private equity in 2008. As of 31 December, the system had approximately $33 billion in assets, according to a statement.