Florida SBA places $235m with energy, aviation funds

The US pension fund is investing with GSO, Chambers Energy Capital and Apollo Aviation Group, while earmarking another $632m to other private equity and real estate investments.  

The Florida State Board of Administration (SBA) has placed about $235 million with new credit funds, investing $100 million with GSO Energy Select Opportunities, $50 million with Chambers Energy Partners III and $85.2 million with Apollo Aviation Group’s SASOF III.

According to its quarterly report, the pension system is also investing a further $632 million in other private equity and real estate strategies, with the largest mandate going to Blackstone Tactical Opportunities Fund II, a multi-strategy vehicle that will invest across The Blackstone Group’s interests.

The GSO vehicle, managed by New York-based GSO Capital Partners, is planning to invest in the debt of stressed or distressed oil and gas companies that have been challenged by falling oil prices. The fund is raising $2.5 billion overall.

Houston-based Chambers Energy Capital has already completed fundraising for its third fund at $900 million. The vehicle will originate new loans to energy companies, as well as invest in existing bonds and loans of distressed energy companies where the firm can achieve attractive risk-adjusted returns, said documents from other LPs in the fund. The fund targets 8-12 percent net returns to be distributed quarterly.

Miami-based Apollo Aviation Group closed its third aircraft loan and lease fund to new money last month. The vehicle raised $833 million, passing its $750 million target. Its predecessor I and II vehicles raised $213 million and $593 million, respectively, said the firm.

In addition to these commitments and the Blackstone fund, Florida SBA also invested $150 million in the Ardian Secondary Fund VII and $125 million in fund-of-funds TrueBridge-Kauffman Fellows Endowment Fund IV. It also doled out $50 million each to buyout funds Accel-KKR Capital Partners V and American Industrial Partners Capital Fund VI. Another $150 million went to an additional buyout fund, ASF Fund VII. In real estate, Florida SBA committed €50 million to Tristan European Property Investors Special Opportunities 4.

Boston-headquartered institutional advisory firm Cambridge Associates assisted with all the searches except real estate, which was overseen by the Townsend Group, SBA’s real estate consultant.