Firms & Funds

Minnesota forms new relationship with Arsenal, pledges $650 mln to PE

-
Minnesota, private equity, Blackstone, Advent International, Arsenal Capital Partners
A student is dressed for subzero temperatures while walking to the student union at the University of Minnesota in Minneapolis on Jan. 29, 2019. Reuters/Eric Miller
  • AUM: $90.2 bln
  • PE allocation: 7 pct
  • Why it’s important: MSB is adding new managers and recommitting to current ones
  • Contact MSBI at +1 651-296-3328 or minn.sbi@state.mn.us

Minnesota State Board of Investment at its March meeting approved $650 million in commitments to new and existing private equity funds.

MSB has $4.8 billion in PE assets, which amounts to 7 percent of its portfolio, the system’s 2018 annual report shows.

The board re-upped with some current managers like Blackstone Group, Advent International, Summit Partners and Oak Hill Capital.

Re-upped commitments include:

  • $150 million to Blackstone Capital Partners VIII, targeting $20 billion;
  • $150 million to Advent’s GPE IX fund, which is targeting up to $17.5 billion, according to Pitchbook. Its eighth fund, which invested in buyouts and growth equity transactions in Europe, North America, Latin America and Asia, closed in 2016;
  • $150 million to Summit’s Growth Equity X, targeting $4 billion. Summit invests in tech, healthcare and life sciences in North America, Buyouts reported;
  • $100 million to Oak Hill’s Fund V, which focuses on investments in North American middle-market companies in consumer retail and distribution, industrials, media, communications and services. Oak Hill targets $3 billion for its fifth fund.

Minnesota added a new fund manager, Arsenal Capital Partners, committing $100 million to its fifth fund.

The board also made a $100 million commitment to Rockpoint Group’s sixth real estate fund, which is targeting $3 billion.