Florida State Board of Administration, Tallahassee, is searching for private equity fund managers to run a new $250 million allocation to the Florida Growth Fund, its in-state investment initiative.
Hamilton Lane, which manages the fund for the $149.2 billion board, is conducting the searches and has discretionary authority to commit the capital, said John Kuczwanski, the board’s communications manager.
Among the types of funds being sought are venture capital funds, mezzanine funds, buyout funds and other private equity funds that would invest primarily in the state, said Greg Baty, vice president of Hamilton Lane.
“We are trying to address every stage of capital needed to have a successful private equity ecosystem in state of Florida,” Mr. Baty said.
In addition, Hamilton Lane seeks to commit Florida Growth Fund assets to direct investments in companies with major operations in the state.
No RFPs will be issued. Instead, Hamilton Lane will reach out to general partnerships, attorneys, accounting firms and others “plugged into the deal-making community in Florida,” as well as through conferences and visiting university and other technology centers, Mr. Baty said.
In addition, fund managers and companies seeking capital can apply to be included in the searches through the Florida Growth Fund website, www.floridagrowthfund.com, Mr. Baty added.
The $250 million doubled the total allocation to the growth fund, Mr. Kuczwanski said. The initial $250 million allocation is nearly all committed, Mr. Baty said; the new allocation will be committed over several years.
The Florida Growth Fund was created in 2009 after state legislation authorized the board to invest up to 1.5%, or $1.8 billion, of the $121.4 billion Florida Retirement System’s defined benefit fund to bolster Florida’s economy by investing in technology and other businesses in the state. The board oversees the system’s assets.
Future allocations by the board to the growth fund will depend on market conditions, Mr. Kuczwanski said.