Alaska to unload $271 mln PE portfolio in secondary sale

  • Sale includes 20 fund stakes
  • Sovereign wealth fund met with Greenhill Cogent in February
  • New report also details 51.6 pct IRR from co-investments

Alaska Permanent Fund Corp expects to generate $271 million by selling stakes in 20 private equity funds, according to a presentation in its May 24-25 meeting materials.

Which funds the $52.5 billion sovereign-wealth fund put up for sale and how those assets were priced are unclear.

APFC documents did not disclose whether an agent acted on its behalf. Its due-diligence log indicates, however, that staff met with Andy NickWes Bender and Michael Song of Greenhill Cogent regarding a “secondary proposal” in February.

Alaska staff was participating in a board meeting and could not immediately be reached for comment.

In addition to its pending secondary sale, Alaska’s meeting materials reported strong returns from its forays into co-investment strategies.

APFC valued the private equity co-investment portfolio at $420 million as of March 31, roughly $200 million above cost. The investments netted an IRR of 51.6 percent over the past three years, according to the report.

Co-investments represent the “best performing strategy in the portfolio,” according to the presentation materials prepared by Steve Moseley, Alaska’s director of private equity and special opportunities.

In a recent interview with Buyouts, Moseley said his team already spent more than half its time on its co-investment initiative, which it launched at the end of 2012.

Alaska had co-invested a total of $71 million across three companies in its current fiscal year, which concludes on June 30. More than 100 opportunities were considered and rejected, according to the report.

Alaska Permanent Fund held an 8.3 percent exposure to private equity as of March 31, according to its report. The portfolio returned 12 percent since inception and delivered positive performance in 27 of the past 29 quarters.

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