TN CRS: Hellman & Friedman VIII gets $80MM
PE commitment from TN retirement system

Milt Capps Updated Sept. 16, 2014 6:50 p.m.

TN CRS: Hellman & Friedman VIII gets $80MM PE commitment from TN retirement system | General Atlantic, Stone Point Capital, Hellman & Friedman Capital Partners VIII, Venrock VII, Amsurg, Tennessee Consolidated Retirement System, TCRS, Sedgwick Claims Management, Emdeon, healthcare, Sheridan Healthcare, private equity, buyouts, ambulatory surgery centers, ASCs,

Updated 16 Sept. 6:50pm: PEHub reported today that H&F is likely to close HFCPVIII at its $10.25BN hard cap.-Ed.

HELLMAN & FRIEDMAN Capital Partners (HFCP) VIII recently received an $80MM commitment via the private-equity program of the Tennessee Consolidated Retirement System (TCRS), a TCRS spokesman confirmed for VNC.

In its recent breakout move, Nashville-based Amsurg turned to owner Hellman & Friedman to buy North Carolina-based Sheridan Healthcare, adding hospitals to the mix for Amsurg, which previously focused solely on on ambulatory surgery centers (ASCs). The acquisition cost $2.35BN. The private-equity firm remains an Amsurg shareholder.

H&F also continues to hold a minority stake in Nashville-based Emdeon, which it acquired in collaboration with General Atlantic in 2008, took public in 2009 and then sold to a Blackstone affiliate in 2011, according to the H&F website.

Also earlier this year, HFCP VI exited the controlling position in Memphis-based Sedgwick Claims Management that it had shared with Stone Point Capital, since the firms' bought Sedgwick in 2010. The Sedgwick sale to KKR was a reported $2.4BN transaction.

HFCP VIII has a roughly $9BN capital target, similar to the size of HFCP VII, according to earlier media reports. The prior fund was said to make investments in the $300MM to $1.2BN range. Targeted sectors reportedly included healthcare, insurance, and software and data services, among others.

TCRS private-equity commitments now total more than $2BN, though general partners' calls for those funds occur over a period of years.

TCRS also confirmed for VNC that an earlier TCRS commitment of up to $35MM for Venrock VII had been "cut back" by the private-equity firm to $30MM. TCRS had increased its proposed commitment to Venrock VII above the $25MM commitment it made for Venrock VI in 2010, but did not get the full increase it sought, VNC was told.

Such large funds often cut back shares when demand is high, in order to allow broader participation. Recent coverage pegs H&F assets under management at $25BN.

Click here for earlier VNC coverage of the TCRS private-equity program. VNC