Florida commits $872.5 mln to alternatives in Q2

The Florida State Board of Administration committed $872.5 million to alternative investments in the second quarter, including about $622.5 million to private equity, according to an investment summary provided by the pension system.

The board, which manages the investments of the $148 billion Florida Retirement System, approved commitments of $100 million each to Freeman Spogli’s seventh fund, targeting $1.25 billion, according to a filing with the U.S. Securities and Exchange Commission; Energy & Minerals Group Fund III, which is expected to hit its $3.5 billion hard cap, peHUB sister publication Buyouts reported; Europa Fund IV, targeting up to $1 billion for European real estate opportunities and real estate-focused Starwood Opportunity Fund X, which is targeting $4 billion, according to an SEC filing.

Florida SBA also approved commitments of $150 million each to Asia Alternatives and Thoma Bravo Fund XI. Thoma Bravo closed its eleventh fund on its $3.65 billion hard cap in May. Asia Alternatives is managing a $200 million fund called Asia Alternatives Florida Investor that filed a Form D with the SEC in April. The fund’s focus was not clear as of deadline.

The system also committed $22.5 million to SVB Capital Partners III and $50 million each to Encap Flatrock Midstream III, RCP Advisors IX and Carlyle Realty Partners VII, which has raised at least $1.5 billion, according to documents filed with the SEC on July 10. RCP Advisors IX has been targeting $250 million with a $400 million cap, according to an SEC filing. EnCap Flatrock Midstream III closed on $3 billion in May.

Florida has stayed extremely busy in alternatives this year. The system committed $1 billion in the first quarter, including $625 million to private equity, with the balance dedicated to various hedge funds, private debt and real estate funds. Florida’s private equity portfolio is valued at around $8 billion, according to John Kuczwanski, a spokesman for the system.

Earlier this year, Florida SBA hired Wesley Bradle from the California Public Employees’ Retirement System as a senior portfolio manager on the private equity team.

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