LPs

Montana commits $60 mln to mid-market PE

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  • Re-ups $20 mln each to Audax, Gridiron
  • Commits $20 mln to new relationship with Angeles Equity
  • Montana values PE portfolio at $1.1 bln

The Montana Board of Investments disclosed three commitments to private equity in its November 17 meeting materials, including a $20 million re-up to Audax Group’s recently closed fifth fund.

Audax held a final close on $2.25 billion, surpassing its $1.75 billion. The firm’s previous fund, a 2012 vintage, netted a 20.68 percent internal rate of return as of June 30, according to Montana documents.

Montana also re-upped $20 million to Gridiron Capital Fund III, a middle-market fund focusing on family-owned businesses in the business services, niche manufacturing and consumer products sectors. It is unclear what Gridiron Capital is targeting for Fund III, though it had raised at least $106 million as of April, according to an SEC filing.

Gridiron did not respond to a request for comment. Its previous fund closed on $425 million in 2012. Fund II netted a 14.8 percent IRR with a 1.32x multiple through the end of the second quarter, according to Montana documents.

Montana also committed $20 million to Angeles Equity Partners’ debut fund. Angeles set a $300 million target with a $350 million hard cap. The Gores Group spinout recently held a first close on $100 million and expects to hit its target by mid 2016, sources told Buyouts in October.

Angeles Equity’s co-founders Jordan Katz and Timothy Meyer previously co-led Gores Group’s industrials team.

Montana valued its private equity portfolio at approximately $1.1 billion as of June 30, according to the pension’s November 17 meeting materials. The portfolio returned a 10.19 percent 10-year rate of return through the second quarter.

Action Item: See Montana’s latest PE report here: http://bit.ly/1MSBbPN

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