Florida SBA sends $450m to Cerberus, LCM, and Deerfield

The Florida State Board of Administration (SBA) made a total of $450 million in commitments to private debt funds over the fourth quarter, the pension said on Wednesday.

The public pension fund committed to Cerberus Capital Management’s senior loan account Cerberus FSBA Levered Loan Opportunities Fund ($200 million); LCM Partners’ distressed debt fund LCM Credit Opportunities Fund III ($150 million); and Deerfield Partners’ special situation fund Deerfield Private Design Fund IV ($100 million), according to its latest manager report. 

A pension plan spokesman declined to comment.

Additional commitments the pension made last year include the Audax Mezzanine Fund IV ($150 million) and the Varde Fund XII ($200 million), according to Private Debt Investor data.

Cerberus has raised $853 million for its Levered Loan Opportunities Fund III, which targets investments in North America and has a target of $1.5 billion, according to PDI data. The firm landed $300 million from the Pennsylvania Public School Employees’ Retirement System in 2015 for a fund-of-one levered loan account.

LCM held the final close of its Credit Opportunities Fund III in October 2016 with €2 billion, as PDI reported. Blowing past the fund’s €1.5 billion target. The total is made up of a comingled account on €865 million and other managed accounts. Arizona State Retirement System has also invested $350 million into the fund.

Deerfield raised $2.4 billion for its Private Design Fund IV last year, targeting the healthcare sectors in North America. The New York-based firm began fundraising for the fourth fund in 2016 with a $2.5 billion target. The previous fund raised $1.6 billion in 2014.

The Florida State Board of Administration manages the Florida Retirement System (FRS) Pension Plan and several additional funds. As of 31 January 2017, SBA had a trust fund with $146.1 billion and a total of $186.2 billion in assets under management.