At a regular board meeting earlier this week, The Alaska Permanent Fund (Alaska) approved its private market allocations for fiscal year 2017.
The allocations included up to $350 million set aside for private credit. The same figure was allocated to infrastructure and other real assets, and also to structured private equity.
An additional $200 million may be added to the infrastructure and structured private equity allocations “if warranted”. No similar ‘add-on’ possibility applies to private credit.
The remaining allocations were $900 million to private equity (plus a possible additional $200 million) and $800 million to “opportunistic investments”.
Alaska added the proviso that the allocations are dependent on staff or outside managers finding suitable investments and that the allocations may not be fully committed at the end of the fiscal year.
“The contributions from the Fund’s private market investments remain positive, and we believe they will become increasingly important in providing both growth and income in this low interest rate environment,” said Alaska board chair Bill Moran.
“It makes sense to continue to build the private asset allocations,” he added.
Alaska committed $50 million to Audax Group’s Audax Mezzanine Fund IV, which an SEC filing revealed had raised $906 million in April towards its $1 billion target.
It is also an investor in Chicago-based mid-market lender Monroe Capital’s Private Credit Fund II, which in April announced a fourth close on $660 million. The fund had a hard cap of $750 million.