US state investor the Alaska Permanent Fund Corporation is to increase its exposure to private equity with the announcement of an additional $1.75bn allocation to alternative asset classes.
The $40bn fund is to invest $600m into private equity, through existing fund of fund gatekeepers Pathway Capital Management and HarbourVest, along with an additional $400m to infrastructure for 2012, with an authorisation for staff to conduct a search for new infrastructure managers if deemed necessary.
Earmarking an additional $18.5m for manager and custody fees this year, the fund I also to inject $750m into private credit, to be allocated to different corporate credit activities.
The fund had allocated $2.87bn to private equity and venture capital as of 31 March this year, including $110m to five Bain Capital funds, including two co-investment funds, $115m across three Blackstone funds, and $120m to Hellman & Friedman. Its largest allocations to any single fund are $50m to the New Enterprise Association 13 Fund and $50m to Oak Investment Partners XIII.
“The board believes that alternative investments are important to complement traditional asset classes, adding diversification and improving the Fund’s risk adjusted rate of return,” said APFC board chair Bill Moran.
The fund is also making its first forays into timber and diversified inflation fund investment, engaging its general consultant Callan Associates to conduct searches for managers in each of the asset classes.
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