Firms & Funds

Minnesota approves more than $850 mln in PE commitments

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Minnesota State Board of Investment, private equity, pension fund
Minnesota Twins left fielder Eddie Rosario (left) center fielder Aaron Hicks (center) and right fielder Torii Hunter celebrate after defeating the Toronto Blue Jays 6-5 at Target Field in Minneapolis on May 31, 2015. Brad Rempel-USA Today Sports via Reuters
  • AUM: $95.7
  • Target Allocation: 25 pct
  • Whom to contact: Mansco Perry, executive director & CIO

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

Board 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 Europe buyouts, Buyouts previously reported;
  • $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;
  • $100 million to LBC Credit Partners V, focused on refinancing, restructurings and growth capital. Minnesota previously committed $100 million to LBC’s fourth fund, according to its March 2019 Comprehensive Performance Report.

Minnesota Executive Director and CIO Mansco Perry told Buyouts that the system’s current allocation for private markets, which includes PE, private credit and real estate, sits at 15 percent on a 25 percent target.

“We believe we have access to the best managers,” said Perry, who added that the May commitments were all made with existing managers.

Minnesota set its PE commitment pacing to $3 billion to $3.5 billion for this year, according to Perry.