Infrastructure funds have found a big supporter in our northernmost state, as the board of the $39 billion
The Alaska Permanent Fund’s board also approved an additional $400 million allocation to private equity gatekeeper
The $39 billion Alaska Permanent Fund committed $500 million to
GS Infrastructure Partners, a division of Goldman Sachs, intends to raise $7.5 billion for GS Infrastructure Partners II. The firm closed its first infrastructure fund in January of this year with roughly $6.5 billion, with plans to invest it in toll roads, airports and ports, as well as regulated gas, water and electrical utilities. Fund II is earmarked for mature transport and utility opportunities in North America and Europe. Goldman Sachs seeks a gross IRR of between 10 and 15 percent.
The firm is going out of its way to encourage big commitments to the fund. It intends to charge a 1.5 percent annual management fee to investors that commit under $100 million, according to Dow Jones’s Financial News Online, but just 1.25 percent fee for those committing from $100 million to $250 million. Investors pledging more than $250 million will pay a 1 percent fee. For investments above $500 million, the fees are negotiable. The firm also charges a 20 percent carry fee after an 8 percent hurdle has been reached, according to Dow Jones.
Alinda Capital specializes in investments in public sector and energy infrastructure assets in North America and Europe. The
In other news, the Alaska Permanent Fund’s CIO, Richard Shafer, plans to retire this month. As of July 3, about 15 applications had been received for the position. The salary range is $200,000 to $300,000, although the board has agreed to be flexible to avoid turning off prospective candidates, according to recent board meeting minutes.