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
At the peak of the last fundraising boom six years ago, sponsors had reason to feel like small potatoes if they were targeting anything less than $1 billion. Today, with fundraising soaring again, such firms are playing a far larger role in the market.
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.
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.
U.S.-based buyout and mezzanine shops raised more than $103.3 billion in capital through July 4. The latest fundraising tally is significantly higher than the same time last year when buyout and mezzanine shops managed to raise only $79.1 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
Readers of Buyouts are familiar with the JOBS Act, which, among other things, lifted the ban against general solicitation for certain exempt offerings and will, once the U.S. Securities and Exchange Commission approves regulations, permit non-accredited investors to make investments into exempt offerings through crowdfunding “portals.”
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