San Francisco inks commitments to Thoma Bravo, Nordic Capital

San Francisco Employees’ Retirement System committed more than $105 million to private equity in December, securing a pair of commitments to new PE funds.

San Francisco committed $50 million to Thoma Bravo Discover Fund II, which is targeting $2.3 billion for lower-mid-market technology companies, an SEC filing shows.

Thoma Bravo’s first Discover fund closed on a little less than $1.1 billion in early 2016. Though still early in its investment period, the fund was marked as netting a 14.7 percent internal rate of return and 1.16x multiple by Florida State Board of Administration through mid-2017.

The larger of the two commitments, 50 million euros ($59 million), went to Nordic Capital’s ninth flagship buyout fund. Nordic Capital Fund IX is targeting 3.5 billion euros for investments in middle-market businesses throughout Europe and North America. The firm was reportedly close to its target as of October, Private Equity News reported.

The typical Nordic Capital portfolio company is valued between 200 million and 800 million euros, according to Minnesota State Board of Investment documents. Los Angeles County Employees Retirement Association’s $89 million commitment to Fund VIII, which closed on 3.5 billion euros in 2013, was netting a 15.74 percent IRR as of June 30.

Nordic Capital and Thoma Bravo could not immediately be reached for comment.

San Francisco valued its private equity portfolio at $3.7 billion through Dec. 31. The retirement system’s total portfolio is valued at $24 billion.

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San Francisco 49ers quarterback Colin Kaepernick (7) celebrates his fourth-quarter touchdown against the Baltimore Ravens in NFL Super Bowl XLVII in New Orleans on Feb. 3, 2013. Photo courtesy Reuters/Brian Snyder