Minnesota considers backing Lexington Partners, Marathon Asset Management

Minnesota State Board of Investments’s Investment Advisory Council (IAC) recommended $600 million in private equity and private credit commitments at its Aug. 12 meeting, according to its website.

IAC recommendations include:

• $300 million to Lexington Partners Co-Investment Partners V, targeting $2.5 billion with a $3 billion hard cap, according to information provided by Minnesota. The pool’s co-investment program has committed $6.3 billion in capital since 1998 and looks for opportunities from buyout and growth capital sponsors;
• $100 million to Wind Point Partners IX fund, targeting $1.2 billion, Minnesota said. The firm focuses on consumer products, industrial products and businesses services;
• $100 million to Whitehorse Liquidity Partners’ Fund III, targeting $1.5 billion with a $2 billion hard cap, Minnesota said. Whitehorse’s third secondaries fund that makes preferred equity investments in private equity portfolios, PE HUB reported;
• $100 million to Marathon Asset Management’s Structured Product Strategies Fund II, targeting $750 million, according to Minnesota. It is the system’s only private credit recommendation in August.

If approved, Wind Point Partners, Whitehorse Partners and Marathon Asset Management would be new relationships for Minnesota.

State Board of Investments staff will review the IAC’s recommendations on Aug. 22, its website shows.

Minnesota set its PE commitment pacing to $3 billion to $3.5 billion for 2019, Active LPs previously reported.