Florida State Board of Administration, Tallahassee, allocated $1.065 billion to seven investment programs, including hiring Magellan Financial Group to manage $490 million in long-only global equities in a separate account, according to John Kuczwanski, FSBA communications manager.
Mercer, an FSBA investment consultant, brought Magellan to the attention of FSBA, which didn't issue an RFP, Mr. Kuczwanski said in an e-mail. Funding came from terminating Jacobs Levy Equity Management, which ran $1.1 billion in active U.S. all-cap equities with a short extension. The remainder was shifted to an internally managed $17.3 billion Russell 3000 equity index fund used for liquidity purposes.
In addition, FSBA, which oversees a total $165.5 billion, committed in private equity:
- $200 million to KPS Special Situations Fund IV, managed by KPS Capital Partners;
- $125 million to TrueBridge-Kauffman Fellows Endowment Fund III, managed by TrueBridge Capital Partners;
- $75 million each to Riverside Capital Appreciation VI, managed by Riverside, and Insight Venture Partners VIII, managed by Insight Venture Partners; and
- $25 million to TrueBridge Special Purpose II
Also, FSBA committed $75 million to Three Bridges Europe Fund, a long-short fund managed by Three Bridges Capital.
Cambridge, a private equity and alternatives investment consultant to FSBA, assisted in all fund commitments except the Riverside hire, which was assisted by Hamilton Lane, another FSBA private equity consultant.