Dallas-Fort Worth commits to CapDyn Fund IV

The US pension fund approved a $20m commitment to Capital Dynamics' latest dedicated secondaries fund which had raised three-quarters of its target by April.

Global fund of funds manager Capital Dynamics has received a commitment from Dallas-Fort Worth International Airport Retirement System for its latest secondaries vehicle.

The pension fund approved the commitment of up to $20 million to Global Secondaries Fund IV, according to minutes from its 31 May meeting, seen by Secondaries Investor. This is the first time the has committed to a Capital Dynamics fund, according to PEI Research & Analytics.

Dallas-Fort Worth will pay a 0.9 percent management fee with an 8 percent preferred return. Capital Dynamics IV expects to have a net internal rate of return in the mid to high teens, according to the minutes.

Capital Dynamics, which is based in Switzerland, is seeking $500 million for Capital Dynamics IV, according to the minutes. The fund, which launched in March 2014, had raised $377.6 million by April, according to a filing with the Securities and Exchange Commission.

Limited partners in the fund include City of Fort Lauderdale General Employees’ Retirement System and Wayne County Employees’ Retirement System, according to PEI data.

Dallas-Fort Worth manages $517 million on behalf of its employees and members and has made previous commitments to secondaries funds including $10 million to Permal Capital Management‘s Permal Private Equity Opportunities V, as Secondaries Investor reported last August.