FROM: Don Pierce, Chief Investment Officer
SUBJECT: Patria Co-Investment Partnership Fund I
RECOMMENDATION:
title
Recommend that the Board approve a ?75 million commitment to Patria Co-Investment Partnership Fund I.
body
BACKGROUND:
Patria Co-Investment Partnership Fund I ("PCPF I") is the first European co-investment-focused fund launched by Patria Investments since the acquisition of the Abrdn Private Equity ("PE") business in 2023. The co-investment strategy was originally established under Standard Life Capital in 2013 and has been led by Colin Burrow and Karin Hyland.
The strategy focuses on investing in companies with enterprise values below ?500 million, generally categorized as lower-mid and mid-market companies. The Patria team sources these opportunities through private equity primary relationships built over 25 years of experience in European PE.
Since inception, the co-investment strategy has participated in more than 135 transactions, delivering a realized 21% IRR and a 2.2x net multiple. Performance details are provided in Table 1: Co-Investment Program Net Results.
Table1: SOF Investment Program Net Performance*
Fund Name & Size
Vintage
NET DPI
NET IRR
NET TVPI
Realized NET TVPI
Pre-Fund I - ?223 million
2013
1.7x
15%
1.8x
1.9x
Pre-Fund II - ?652 million
2017
1.1x
14%
1.8x
2.2x
Pre Fund III - ?1,100 million
2020
0.2x
16%
1.5x
3.6x
*Performance as of June 30, 2025
Staff and NEPC believe that PCPF is a compelling strategy and opportunity for SBCERA for the following reasons:
* Lower Middle Market: The lower middle market in private equity is generally inefficient, including in Europe. Investing in this segment provides opportunities to add value and generate strong returns.
* Portfolio Selection: Traditional private equity investing often includes significant blind-pool risk. The Co-Investment Team can selectively build the portfolio by making relative value judgements across investments and focusing on companies with stron...
Click here for full text