PSERS Recommends $100MM to Trilantic Capital Partners V (North America) L.P.


  • 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

Investment Team

  • 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

GP “Value Add”

  • 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

Market Opportunity

  • 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

History with PSERS

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

Board Issues

  • 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