The $23 billion
The limited partner, whose target allocation range extends from 5 percent to 9 percent, intends to commit $450 million both this year and next to private equity, according to a pension fund document. Arizona says it is particularly interested in general partners that invest in small companies. This part of the market historically has used less leverage and has seen lower purchase price multiples, according to a pension fund document. Arizona also may form an opportunistic private investment allocation earmarked for emerging managers. Markets of particular interest include energy, clean tech, infrastructure, distressed-for-control, turnaround and secondaries.
Commitments made by Arizona this spring, totaling $320 million, went to such funds as
All told, the state’s private equity portfolio includes about 35 private equity managers. The state has about $1.5 billion in outstanding commitments, about $1 billion of which has gone to corporate finance funds, $380 million to special situations funds and $65 million to venture capital funds. Arizona received permission to commit to the asset class in October 2006, and it made its first pledge in September 2007.
Past commitments include ones to