Friday, 25 July 2014
Last updated 18 hours ago
Jan 25 2007 | 10:17am ET
The $14.8 billion Los Angeles Fire and Police Pension Fund on Jan. 18 issued a recommendation to its board to approve an investment of up to $10 million in the Providence Equity Partners VI and up to $10 million in the Sankaty Credit Opportunities III.
PEP VI is expected to be an $8 billion fund with a focus on buyouts of market-leading media and communications companies, and Sankaty is seeking to raise $2 billion for its third fund focusing on distressed debt, mezzanine investments and other special situations, according to the system. PEP VI’s management fee is 1.6% of capital commitments to the fund up to $4 billion and 1.5% per annum on capital commitments in excess of $4 billion during the investment period. Thereafter, the fee will be reduced to 1.0% of net invested capital.
Sankaty III’s management fee will be 1% of committed capital from the initial closing until the date on which 50% of capital commitments are called. The fee will increase to 2.0% of committed capital through the fifth anniversary of the fund, and 2% of the limited partners capital account thereafter.
The board has allocated 9% of the pension fund to private equity, totaling $1.33 billion while, adjusting for the over allocation factor, the fund’s maximum commitment amount is $1.6 billion, according to the system. To date, the fund has committed approximately $1.1 billion to private equity, leaving about $505 million yet to be committed.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…