South Carolina Retirement Backs KPS Special Situations Fund

The South Carolina Retirement System Investment Commission, which manages $40 billion in assets, is backing private equity firm KPS Capital Partners’ Special Situations Fund VI. The firm is targeting an $8 billion raise.

KPS has also received $100 million from the Los Angeles City Employees’ Retirement System (LACERS) for the vehicle, as well as $25 million for its Mid-Cap Fund II, which intends to raise $1.5 billion.

The investments come a month after LACERS allocated $75 million and $20 million to the funds, respectively.

KPS raised $7 billion in new capital in 2019 for the strategies’ predecessor vehicles, exceeding the hard caps for each.

It just took four weeks to raise $6 billion for its fifth flagship special situations fund, nearly doubling the $3.5 billion raised for its last vehicle in 2013.

KPS announced a $1 billion final close for its inaugural Mid-Cap Fund, adding that the two vehicles garnered more than $15 billion in total.

Other pledges revealed in the latest board meeting materials from the South Carolina pension include up to $50 million for Varsity Healthcare Partners IV and $40 million for Banner Ridge Secondary Fund V.