Minnesota pledges $850 mln to 7 PE, credit funds

  • Largest commitments went to IK Investment Partners’ Fund IX and Permira’s Fund VII
  • Allocation for “private markets” (including PE) stands at 15 pct
  • Private markets target allocation is 25 pct

Minnesota State Board of Investment approved $852 million to seven private equity and credit funds spanning the technology and healthcare sectors at its May 30 meeting.

Commitments included:

  • $150 million to Apax Partners’ Fund X, targeting $10 billion. Apax’s latest flagship focuses on telecom, global technology, services, healthcare and consumer.
  • €135 million ($151 million) to IK Investment Partners’ Fund IX, targeting $2.8 billion. IK IX focuses on Northern European buyouts.
  • $100 million to KKR’s European Fund V, a buyout fund geared toward investments in the U.K, the DACH region, the Nordics, France, Italy, Spain and Benelux, targeting $5.84 billion.
  • €135 million ($151 million) to Permira’s seventh fund, targeting $12 billion.
  • $150 million to TPG Capital’s eighth fund, which raised $12 billion as of December and focuses on incubation, growth capital and early-stage investments, according to Bloomberg.
  • $50 million to Warburg Pincus’s WPC-SEA II fund. The pool invests in TMT, energy, financial services, healthcare and industrial and business services.
  • And, $100 million to LBC Credit Partners’ Fund V, which focuses on refinancing, restructurings and growth capital. Minnesota previously committed $100 million to LBC’s fourth fund, according to its March 2019 Comprehensive Performance Report.

All the May commitments were all made with existing managers, said Minnesota Executive Director and CIO Mansco Perry.

The system’s current allocation for private markets, which includes PE, private credit and real estate, sits at 15 percent, below its target of 25 percent, Perry said.

Minnesota set its PE commitment pacing for this year at $3 billion to $3.5 billion, he added.

Action Item: Action Item: The next State Board of Investment Advisory Council meeting is Aug. 12, and the next board meeting is Aug. 22. Details here: http://mn.gov/sbi/UpcomingMeetings.html.