Florida commits nearly $1 bln in Q1, gives TPG big vote of confidence

The Florida State Board of Administration made a big bet on TPG Capital in the first quarter, committing $300 million across two funds, part of a larger set of commitments totaling nearly $1 billion.

Florida SBA, which oversees the $151.6 billion Florida Retirement System, committed $200 million to TSSP Adjacent Opportunities Partners, a fund managed by TPG’s distressed-debt investment team TPG Special Situations Partners. The Adjacent Opportunities Partners fund pursues investments that don’t quite fit with the Special Situations Partners mandate, but it also will co-invest alongside the special situations funds.

TSSP Adjacent Opportunities Partners, with an initial cap of $2 billion, is an open-end fund that allows limited partners to begin realizing their investment after five years, according to a description prepared by Portfolio Advisors for client Pennsylvania Public School Employees’ Retirement System, another LP in the fund.

Florida SBA also committed $100 million to TPG Growth III, which closed on $3 billion in April and which is earmarked for small buyouts and growth equity investments around the world in a variety of industries.

It is unclear if Florida SBA, an investor in TPG’s fourth, fifth and sixth flagship funds, plans to re-up in Fund VII, currently in the market targeting $10 billion.

Meantime, Florida SBA kicked in an additional $674 million to private equity funds during the quarter, according to an investment summary.

The state committed $75 million each to Francisco Partners IV, which closed on $2.8 billion in February; Insight Venture Partners IX, which is targeting $2.75 billion; and Siris Partners III, which closed on $1.8 billion earlier this year.

The system also committed $100 million to EnCap Energy Capital Fund X, which closed on $6.5 billion in April; $125 million to SVB Strategic Capital Overage Fund; $54 million to Fairview Special Opportunities Fund II; and $70 million to Equistone Partners Europe Fund V, which closed on its 2 billion euros hard cap in April.

Florida SBA also committed $100 million to Vine Media Opportunities Fund III, which closed on $500 million earlier this year for investments in film, television and entertainment assets.
In the fourth quarter the state committed $75 million to Cressey & Company Fund V, which closed on $615 million in December.

Florida SBA’s private equity portfolio was valued at about $8 billion as of July. The system generated a 19.8 percent return in fiscal 2013-2014, according to its annual report. Florida SBA has a 6 percent allocation target to private equity and a 5.5 percent actual allocation, according to John Kuczwanski, spokesman for the program.

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

Photo courtesy of Shutterstock