Alaska Sets Up To $1.8B For Blackstone, Carlyle

  • $47 billion state fund earmarks $500 million for Blackstone Strategic
  • Alaska fund commits separate $500M to no-fee Blackstone effort
  • Carlyle may get up to $750 million for existing and future funds

The non-pension fund’s board of trustees approved the commitments at its July 18 meeting with plans for capital calls to come from “selective reductions” across the fund’s stock and cash portfolios. “These investment opportunities provide the … fund with greater diversification in our holdings and exposure to high quality private asset investments,” Bill Moran, the board chairman, said in a prepared statement.

The investments are structured to allow the fund to make additional investments through no-fee funds, lowering the overall cost compared to other private assets held by the fund, he said.

The Alaska Permanent Fund made a $500 million commitment to the Blackstone Strategic Holdings Fund, which takes minority stakes in hedge fund general partnership interests. Alaska made a separate $500 million commitment to a no-fee fund, Blackstone Alternative Asset Management, which will make investments in selected partnerships alongside Blackstone Strategic Capital Holdings, a vehicle specializing in taking stakes in mature hedge funds.

Meanwhile, Carlyle has designed a “custom program” to be focused on global natural resource private asset investment strategies, similar to Alaska’ real return program for public asset investments.

Alaska pledged up to $375 million in primary investments to Carlyle International Energy Partners LP and NGP Natural Resources XI LP as well as a possible investment in a yet-to-be formed agribusiness or metals/mining fund. Another $375 million was committed to pre-fund direct and other direct Carlyle investments focusing on the natural resource, metals, and energy sectors.

The Alaska Permanent Fund is also inking an agreement with CS Capital to seek out and acquire up to $100 million in U.S. industrial real estate, the fund said.

Founded in 1976, the dedicated fund owned by the state of Alaska was created by a state constitutional amendment that called for setting aside 25 percent of all mineral royalties, rentals, revenue-sharing and bonuses received by the state, mostly from oil and gas development. Most of the income from the fund goes toward a dividend payment to qualified Alaska residents.