Return to search

Alaska Primes Private Equity Pipeline

One of the United States’s only sovereign wealth funds, the $40.8 billion Alaska Permanent Fund, announced plans to make $600 million in new private equity commitments by June 30. The additions are part of a $1.75 billion contribution to alternatives that also includes more than $1 billion earmarked for private credit and infrastructure investments.

Currently, the fund is underweight in private equity; its $1.3 billion in the asset class accounts for just half the fund’s 6 percent target. With its new commitments, the fund expects to have $3.1 billion in committed private equity capital.

“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 Bill Moran, the fund’s chairman, in a prepared statement.

While the specific private equity selections have not been made or disclosed, the choices are to be managed by the fund’s two private equity advisers, HarbourVest Partners and Pathway Capital Management.

The Alaska Permanent Fund was created in 1976 to manage the state’s oil and mineral wealth following the completion of the Trans-Alaska Pipeline. Not a pension, the fund’s main aim is to save and invest the state’s natural resource revenue, and spend some of it on capital projects as well as dividend payments to the state’s residents. Between 1982 and 2009, the fund paid out about $17.5 billion to Alaskans in dividend checks.