LPs

Alaska Permanent CIO resigns; fund set to commit $1.1 bln to private equity in 2019

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Alaska Permanent Fund, pension fund, private equity, venture capital, Russell Read, Marcus Frampton
Robert Redington, a rookie, competes in the official restart of the Iditarod, a nearly 1,000 mile (1,610 km) sled dog race across the Alaskan wilderness, in Fairbanks on March 6, 2017. Photo courtesy Reuters/Nathaniel Wilder
  • Assets Under Management: $65.4 bln
  • PE actual allocation: 11.4 pct
  • PE target allocation: 11 pct
  • Why this is important: The fund is building co-investment, direct-investment platform and recruiting a CIO
  • Contact: contact@apfc.org; +1 907-796-1500

Alaska Permanent Fund Corp’s chief investment officer, Russell Read, resigned July 10 to pursue an opportunity in London, the pension said.

Marcus Frampton will be acting CIO until a successor is named. Frampton, who has been with Alaska Permanent since 2012, is director of investments, real assets and absolute returns.

Alaska Permanent’s $7.4 billion PE portfolio includes special opportunities and is managed by Stephen Moseley.

Buyouts, growth and venture account for more than 76 percent of the PE portfolio.

The PE portfolio generates one of the highest returns for the fund. It returned 19.83 percent over one year, 17.49 percent over three years and 19.07 percent over five years as of May 31, 2018.

PE’s actual allocation was 11.4 percent versus a target allocation of 11 percent of the total fund as of March 31, 2018, documents show.

Alaska Permanent by 2025 plans to increase its private equity exposure to 14.6 percent of the total portfolio from 11.4 percent, documents show.

The fund has been building its co-investment and direct investments portfolio, which has posted an IRR of 64 percent since its inception in 2014.

Some of its noteworthy investments are Denali Therapeutics, HealthSun, Indigo Agriculture and Foundation Health.

About 30 percent of $1.1 billion in new commitments to PE for 2019 will be for co-investments, documents said.

The fund reupped to HV Holtzbrinck Ventures, Kelso Private Equity, Lightspeed Venture Partners, Battery Ventures, Sentinel Capital Partners and Whitehorse Liquidity Partners as of March 31, 2018, documents said.

The largest non-U.S. exposure in Alaska Permanent’s PE portfolio is to Europe. Its largest sector exposure is to technology, followed by industrials and healthcare, documents said.

Action Item: Read more on Alaska Permanent’s PE portfolio here https://bit.ly/2L9XhR4