Florida SBA Approved $2.6B for Alternatives Program
The Florida State Board of Administration approved approximately $2.6 billion in various funds and investments, including a new credit asset class, private equity, real estate, and strategic investments, in the second quarter.
The newly established active credit/private credit portfolio received $900 million. Private credit was previously categorized as strategic investments and multi-asset lending programs, and now totals approximately $4 billion.
The $197 billion Florida fund chose six managers last quarter with the help of consultancy Cambridge Associates. The largest commitment, $200 million, was to PGIM Energy Partners (SBA) II. Other funds included Atalaya Capital Management‘s Atalaya Special Opportunities Fund IX ($150 million); Primary Wave Music IP Fund 4 ($150 million); QEP Advisors’ Quantum Capital Solutions II ($150 million); OIC Credit Opportunities IV ($125 million); and Christofferson Rob & Company’s CRC Single Investor Fund XIX ($125 million).
The approximately $18 billion private equity program added another 12 holdings, including multiple co-investment opportunities. The new fund investments were: TrueBridge Capital Partners Fund VIII ($75 million); EnCap Investments‘ EnCap Energy Capital Fund XII ($75 million); Investindustrial VIII ($116 million); Peak Rock Capital Fund IV ($125 million); and Monomoy Capital Partners V ($100 million).
Real estate investments, which are increasing to 12% of total assets, received $731 million in new commitments in the second quarter. The $19 billion portfolio lost 7.81% in the year ending March 31, 2024.
Florida added Starwood Distressed Opportunity Fund XIII ($150 million); Core and Value Advisors credit facility loan to REPIMAC Lender ($252 million); Heitman Capital Management JV ($26 million); Invesco Advisors’ Laredo Maybird ($53 million); AEW Partners Real Estate Fund X ($100 million); and Carlyle Realty Partners X ($150 million).
Within the $22 billion strategic investments portfolio, Florida includes in the program allocations to hedge funds, insurance-linked securities, real assets and infrastructure. In the second quarter, $300 million in commitments were made to: Hull Street Energy ($150 million); Kennedy Lewis Residential Property Income Company ($100 million); and Pillar Capital’s Juniperus Insurance Opportunity Fund ($50 million).