Florida Spreads $500M Across 10 Private Market Funds in Q3
Florida’s $262 billion state investment agency allocated $500 million to private markets in the last quarter, with new investments in private credit, private equity, and real estate. The Florida State Board of Administration (SBA), responsible for overseeing the $150 billion Florida Retirement System and other assets, authorized investments in over 10 new funds.
A $150 million commitment was allocated to ICG Europe Mid-Market Fund II within the credit sector. ICG’s primary European Corporate strategy concentrates on Western Europe, aiming at locally sourced, directly originated, and privately negotiated subordinated debt and equity investments.
Heitman Capital Management led the quarter’s real estate commitments, obtaining most of the $400 million distributed across six funds. The iStorage joint venture of the firm secured two substantial investments: $59 million for JV II OKC Holdings and $56 million for JV II RGV Holdings 1. Crescent BTR became a significant beneficiary, securing $52 million for its primary fund and an extra $47 million for its Greensboro Hobbs Road initiative.
Westport Capital Partners’ WCP NewCold III received a $150 million commitment in other real estate transactions. The opportunistic real estate strategy has garnered support from many public pension funds and concentrates solely on temperature-controlled storage facilities globally. Invesco secured a $43 million investment for a credit facility associated with real estate, known as REPIMAC Lender.
Private equity activity has slowed compared to previous quarters. Inflexion Enterprise Fund VI, the latest fund series from Inflexion Private Equity Partners, received a $32.5 million commitment.
The SBA also implemented its co-investment strategy by allocating $25 million across three transactions under the advisement of Cambridge Associates. CVC Capital Partners and Trace Capital Management each obtained allocations of $10 million, and Warren Equity Partners acquired $5 million.
The aggregated fund increased by more than 13% for the year ending in August, as indicated by performance reports submitted to the trustees. At the conclusion of August, the investment portfolio continued to be underweight in active credit strategies, private equity, and real estate. The allocations occur subsequent to $2.6 billion in investment mandates during the second quarter.