The California State Teachers’ Retirement System is planning to put more emphasis on small and middle-market buyout, debt-related and emerging market funds during the 2015 fiscal year end June 30 according to an investment plan released by the retirement system in advance of its July 11 board meeting.
Top News & Analysis
United Parcel Service wants to co-invest in deals for the first time alongside sponsors, while Guardian Life Insurance Company of America is shopping for a separate-account manager to re-energize its co-investment program. Together they are part of a post-crisis boom in co-investing that is presenting fresh challenges for limited partners. These include side letters that give an edge to certain LPs on opportunities, heated competition for equity allocations, research showing co-investments underperform, and even the prospect of regulation by the U.S. Securities and Exchange Commission.
With opportunities in the Midwest on the rise, executives at Miami-based H.I.G. Capital decided to get closer to the action by opening a new office in Chicago less than a year ago.
Oaktree Capital Management has hit the market with its seventh real estate fund targeting about $3 billion, less than a year after closing the prior fund, according to a person with knowledge of the fundraising, as well as marketing documents for Fund VII.
Z’Tejas Southwestern Grill, a portfolio company backed by KarpReilly, has hired Mastodon Ventures to advise on strategic alternatives, two sources said. This could include a sale, the sources said.
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.
In this video from the PartnerConnect East conference, Michael Felman, the president of MSF Capital Advisors, a a global multi-family office, discusses the opportunities for direct investing and fund investments, in both venture capital and buyouts.
Buyout and mezzanine funds based in the Unites States raised more than $84.58 billion in capital commitments from institutional investors through June 20, 2014. The latest fundraising figure is over twice the amount raised this time last year when firms managed to raise $41.9 billion.
From the Editor
Many advisers preach to their clients the importance of maintaining a steady commitment pace to alternative investments, in part to ensure money gets deployed during both good times and bad. In practice, limited partners often fall short of this ideal.
Inside the Deal
Almost every sponsor and capital source you speak to believes that interest rates are going up. It might not be next week, next month, or even by the end of this year. But it’s hard to imagine that this incredibly low rate environment will go on forever. So, wouldn’t it make sense for mid-market lenders to structure their loans so that they benefit from the imminent increase in rates?
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