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KKR vets get more time to raise new fund

September 5, 2013: 12:04 PM ET

CapturePublic Pension Capital gets a nine-month lifeline.

FORTUNE -- It's tough to raise a new private equity fund. Even if you have decades of experience at Kohlberg Kravis Roberts & Co. (KKR) on your resume.

Last summer we reported that former KKR executives Perry Golkin and Michael Tokarz were quietly raising a new private equity fund that would be marketed almost exclusively to public pension systems. Not surprisingly, it was called Public Pension Capital. The idea was to closely follow the so-called ILPA principles -- a set of investor-friendly guidelines that focus primarily on fee and governance issues.

One month later, the pair secured a $100 million commitment from the Oregon Investment Council, contingent on the fund closing on its $500 million target within 12 months.

It sounded manageable at the time, with Golkin and Tokarz were talking about raising upwards of $1 billion. But they are falling short, and word is that Oregon is giving them a nine-month extension to get it done (through the end of next June).

"I still think they'll make it, but clearly it's been more difficult than they anticipated," says a source familiar with the situation.

Golkin originally joined KKR in 1986, and worked on such deals as Willis Group, Primedia, Walter Industries, Rockwood Chemicals, and American Re-Insurance Company. He also served at various times as the firm's head of financial services investing and head of fundraising, transitioning into a part-time advisory partner role in 2009.

Tokarz spent 18 years at KKR, before leaving in 2002 to form a private merchant bank and serve as managing principal and portfolio head of publicly-listed MVC Capital (MVC).

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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