NGP and Crestline funds backed by Alaska

The sovereign wealth fund put $125m into private debt vehicles in its latest batch of commitments.

  • Name: Alaska Permanent Fund
  • HQ: Juneau, US
  • AUM: $76.0 billion
  • Allocations to alternatives: 28.9%

The Alaska Permanent Fund Corporation (APFC) has confirmed private debt commitments of up to $125 million, according to documents from their recent quarterly board meeting.

The sovereign wealth fund has put $65 million into Crestline Opportunity Fund V, with a further $60 million in NGP Royalty Partners II.

NGP Royalty Partners II is a $600 million fund that invests in the oil/gas and natural resource sectors across North America. The vehicle has received backing from two other US public pensions, according to Private Debt Investor data: $150 million from the Oregon State Treasury and a further $50 million from Sacramento County Employees’ Retirement System.

Founded in 1988, NGP is a premier private equity firm with approximately $20 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors.

Crestline Opportunity Fund V launched in mid-2022 and had raised close to $400 million as of June 2022, according to PDI figures. The Crestline Opportunistic strategy seeks to provide capital solutions ranging from senior debt to structured equity to mid-market companies, real estate lending and specialty finance programs across North America and Europe.

The previous fund in the series, Crestline Opportunity Fund IV, closed with commitments of $1.6 billion in March 2022 below the $1.75 million target for the fund. 

Incorporated in 1997, Crestline Investors is a Texas-headquartered asset management firm that provides financial solutions in various asset classes such as private equity, debt and real assets across North America and Western Europe.

APFC currently allocates 2.6 percent of its total investment portfolio to private credit, comprising just under $2 billion in capital. The institution has a 2.8 percent target allocation to the asset class.

As illustrated below, APFC’s recent private debt commitments have focused on distressed and mezzanine vehicles across North America. They have committed over $400 million to the asset class in 2022 so far.

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