Overview

The Fund is Trilantic’s first independent fundraise following the Firm’s spin-out from Lehman Brothers in early 2009
The Fund size is $2 billion and the hard cap is $3 billion
The Fund will invest $50 million to $200 million per deal in control or significant minority investments in North America

Fund Strategy

The Fund partners with management teams which have a compelling business strategy and vision for a target company, thus avoiding auctions (“buy-in” investment strategy)
The focus will be on mid-market high-growth companies in the consumer, financial services, business services, and energy sectors
The Fund seeks companies exhibiting a sustainable competitive advantage in their respective market providing opportunities for long-term value creation through fundamental growth

Trilantic’s 5 partners and 5 principals, comprising the senior team, have all previously worked together at Lehman
The senior team is supported by a group of ten junior investment professionals, two experienced Operating Partners and a ten person Advisory Board

Trilantic’s “buy-in” investment strategy has differentiated itself from other buyout funds
Trilantic assigns a dedicated team to closely monitor each portfolio company through the life of the Fund’s ownership
Trilantic successfully enhances portfolio value through a combination of growth, margin improvement, debt reduction and multiple expansion at exit

Lehman Brothers Merchant Banking II, L.P. (1997) has a 1.4x gross multiple and a 5.2% net IRR
Trilantic Capital Partners III, L.P. (2004) has a 2.0x gross multiple and a 17.1% net IRR
Trilantic Capital Partners IV, L.P. (2007) has a 1.7x gross multiple and a 16.6% net IRR

Trilantic’s strict middle market focus has established it as the partner of choice for management teams, entrepreneurs and family-owners of middle market companies
Investment opportunities are generated on a regular basis due to the Trilantic team’s extensive network of professional contacts
In multiple instances, Trilantic has invested with repeat management teams who then become references for future deals

Lehman Brothers Merchant Banking Partners II (1997) – PSERS invested $159 million
Trilantic Capital Partners IV, L.P. (2007) – PSERS invested $77 million

Pennsylvania Presence – Antero Resources focuses on acquiring and developing unconventional gas properties and currently owns 35,000 acres of land in PA
Placement agent – Evercore Group L.L.C. (and its affiliates) is the Fund’s global placement agent. (there is no placement agent for PSERS)
PA political contributions – none
Relationship with consultant – None

Staff, together with Portfolio Advisors, recommends that the Board invest an amount not to exceed $100 million plus reasonable normal investment expenses

Source: Charles Spiller, Pennsylvania Public School Employees’ Retirement System