Washington bets $800m on PE

The $84bn retirement system announced commitments to funds managed by Silver Lake Partners, Triton Partners and Roark Capital Partners in addition to investments in infrastructure and real estate vehicles.

The Washington State Investment Board, which oversees the state's $84.2 billion retirement system, committed approximately $800 million to private equity at its meeting last week, spokeswoman Liz Mendizabal told Private Equity International.

The system re-upped $400 million with Silver Lake Partners’ fourth fund, a buyout and growth investment vehicle targeting $7.5 billion with a $10 billion hard-cap, Mendizabal said. Washington has committed $435 million across Silver Lake’s three previous flagship funds, the most recent of which was generating a 1.4x total value multiple and a 19.72 percent net internal rate of return as of 31 March, according to state documents.

Washington also re-upped €200 million with Triton Partners, which is targeting €2.4 billion for mid-market buyouts in Nordic and German-speaking countries for its fourth fund. The board had committed €150 million to Triton Fund III, which was generating a 1.1x multiple and 8.54 percent net IRR as of 31 March.

The only new relationship among Washington’s commitments was with Roark Capital Group, whose third fund is targeting $1.25 billion for investments in mid-market franchising, consumer products and services, environmental services and business services companies. Washington committed $150 million to the vehicle.

Earlier this year, The New Jersey Division of Investment released fund terms related to its $175 million commitment to Roark Capital Partners III. Those terms included a 2 percent management fee during the commitment period on the first $1.25 billion raised. That fee falls to 1.75 percent until three years after the final close, at which point it will then drop to 1.5 percent for the remainder of the fund’s life. The fund has an 8 percent hurdle rate.

Lazard has been engaged as a placement agent on the fund, according to documents.

Washington had $16.1 billion under management through its private equity programme as of 30 June, according to its website. The portfolio is worth approximately 19.1 percent of Washington’s assets.

In addition to its private equity commitments, Washington also invested $500 million across a pair of infrastructure vehicles – Global Infrastructure Partners II and Stonepeak Infrastructure Fund – as well as a $500 million commitment to Evergreen Real Estate Partners.