By Muskan Arora
The $142.1bn Minnesota State Board of
Investment committed $900m to its private equity sleeve, to managers with existing
relationships.
The system allocates 17.6% or $16bn to its
private equity sleeve, and returned 1.8% in the last quarter, as of June 30.
The PE sleeve returned 9.8% over a 1-year period,
as of June 30.
There has been a noticeable hike in private
equity investments in healthcare, finance and technology in 2024.
Following the tailwind, the $113.9bn
Virginia Retirement System and $472.8bn Canada Pension Plan InvestmentBoard invested in Thoma Broavo Fund XVI, which focuses on infrastructure
and software.
Further, the $74.6bn Pennsylvania PublicSchool Employees’ Retirement System committed $225m to Summit Partners Growth Equity Fund XII and LLR Equity Partners VII, which focus on technology and healthcare.
[The graph shows value of private equity capital invested worldwide in the 1st quarter of 2024, by vertical]
PE commitments by Minnesota SBI
The system made the first commitment of up
to $300m to LTPC II, managed by BlackRock with an active ownership
model.
The fund will be focused on services,
healthcare, consumer, technology and financial sectors, within North America
and Western Europe.
“The fund’s active ownership model will
focus on engagement around key drives of value creation including improving
company’s operations, assisting with M&A, optimizing capital structure,
driving organic growth and human capital,” as stated in the recent meeting documents.
Minnesota SBI made its second allocation of
up to $250m to Summit Partners Growth Equity Fund XII, managed by Summit
Partners.
The fund will focus on investing in growth
companies within technology, healthcare and life sciences, and growth products
and services which also include financial services financial technology,
business services, branded consumer, industrial technology and other growth
industries.
The fund seeks to identify these companies
through “thematic idea-generation process” which takes on its “deep sector
expertise and direct sourcing capabilities”.
The system made its third commitment of up
to $150m to Thoma Bravo Fund XVI.
Thoma Brovo fund aims to create value by
transforming businesses in fragmented, consolidating industry sectors into
large, highly profitable and valuable companies through growth initiatives.
Infrastructure software and technology
enabled services industry sectors are major focus of the fund, and further considers
ESG factors when investing and monitoring its portfolio companies.
Lastly, the system committed up to $200m to
THL Equity Fund X, managed by Thomas H. Lee Partners.
The fund will seek middle-market buyout
investments with a focus on North America.
THL fund invests in financial technology
& services, healthcare and technology & business solutions.
