San Diego County Employees Retirement Association committed $100 million to Blackstone Capital Partners VI and $50 million to Blackstone/GSO Capital Solution, subject to completion of due diligence.
Blackstone Capital Partners VI, a buyout fund, has an initial target of $20 billion, with $9.5 billion committed as of March 2010. The fund is expected to close in May. Blackstone/GSO Capital Solution, a distressed debt fund managed by Blackstone subsidiary GSO Capital Partners, has a $2 billion target.
Tony James, Blackstone president, said in response to questions at the Friday board meeting that the association could expect to receive $2.50 to $3 for every dollar SDCERA invested in Blackstone Capital Partners VI.
The commitments were made under the board’s new policy of making larger commitments to fewer managers. The board currently has commitments to 60 private equity funds with 36 managers, said Yegin Chen, investment officer. Association officials plan to cut the number of funds and managers by half.