WSIB Commits $950M to GTCR, CD&R PE Buyout Funds

The Washington State Investment Board committed $950 million to two longstanding private equity managers in September, adding to its U.S. and European buyout exposure as its large-buyout portfolio continued to post double-digit returns.

Trustees approved a $650 million commitment to GTCR Fund XV and a $300 million commitment to Clayton, Dubilier & Rice Fund XIII. Both investments were recommended by consultant Albourne.

GTCR Fund XV will primarily pursue investments in North American companies across business and consumer services; financial services and financial technology; health care; and technology, media and telecommunications.

WSIB has committed about $3.2 billion across 12 GTCR funds since beginning the relationship in 1999. Recent allocations included $650 million to GTCR Fund XIV in 2023, $200 million to GTCR Strategic Growth Fund II in 2024, and $100 million to GTCR Capital Solutions Fund in 2025.

The strongest performer in the relationship has been GTCR Fund VII-A, a 2001 vintage investment that generated an 83% internal rate of return, according to board materials.

CD&R Fund XIII has a broader geographic mandate, targeting control-oriented buyouts in North America and Western Europe. The fund will focus on companies operating in industrials, health care, consumer products and services, technology, and financial services.

The new commitments follow a solid period for WSIB’s large-buyout holdings, which produced a net internal rate of return of 11.47% for the year ended March 31.

Separately, WSIB selected Ashmore Investment Management for an active emerging markets equity strategy. The mandate’s size was not disclosed. The selection was made through the roughly $195 billion board’s open, rolling search for emerging markets managers.