Florida pension completes $3bn in alts allocations in Q2

The $200 billion State Board of Administration of Florida released details on the 18 funds it selected over the course of the second quarter to manage roughly $3 billion across private equity, real estate and hedge fund strategies. A total of eight allocations totaling more $1 billion were made across the $18 billion strategic investments asset class that includes hedge fund strategies. Cambridge Associates assisted Florida in selecting the new line up of managers and indeed half of the managers hired were new to the pension portfolio -- Kennedy Lewis, Hudson Bay, PAG and Blue Torch Capital. Distressed debt dominated the new mandates with allocations to CarVal Investors’ CVI Credit Fund A V LP ($350 million); Kennedy Lewis Capital Partners’ KLCP ERISA Fund E2 (US) LP ($200 million); LCM Partners’ COPS 4 (USD) SLP ($200 million); and LCM Partners’ SOLO V SLP ($50 million). Subordinated debt offerings attracted capital to with Blue Torch Credit Opportunities SBAF Fund LP receiving $250 million and PAG Asia Loan Advisors Limited’s PAG Loan Fund IV LP seeing a commitment of $150 million. A commitment to Hudson Bay Capital’s multi-strategy fund -- Hudson Bay Fund L.P. – received a commitment of $200 million. Another $200 million went to EIG Credit Management Company for its commodities fund, EIG Global Project Fund V. Also overseen by Cambridge Associates is Florida’s $16 billion private equity portfolio, added nearly another $1 billion in fresh capital in the second quarter. The majority of capital went to buyout funds with CVC Capital Partners, Francisco Partners, Livingbridge EP and Silver Lake Partners winning new mandates. CVC Capital Partners VIII is set to manage €200 million (US$237 million), while Francisco Partners VI took in $100 million. Livingbridge 7, meanwhile, took in €60 million (US$71 million). And Silver Lake Partners received a $150 million commitment for its Silver Lake Partners VI. Co-investments as a private equity strategy received a $200 million commitment with an allocation to Lexington Partners’ Lexington CIP V‐F‐O, while venture capital firm SVB Capital saw a $75 million ticket for its SIF X fund. The largest of the alternative investment portfolios within the Florida State Board portfolio at roughly $20 billion, real estate reported second quarter activity totaling $424 million. Selected with assistance from Mercer were REITS managed by Cohen and Steers (COHENSTRSGBL REIT SUP) for $250 million and DWS Distributors (DWS GLOBAL REIT SUP), $150 million. Townsend assisted in choosing Coldwell Banker Richard Ellis for its closed end fund Coldwell Banker Richard Ellis (CBRE) Asia Value Partners V for a $24 million commitment.

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