Firms & Funds

Montana bets $20 mln on Foundation’s ninth fund as commitments rise

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Montana Board of Investments, pension fund, private equity
Justin Harrell of Roy, Montana, gets bucked off the horse Saturday Kibitz, losing his boot in the process, in the novice saddle bronc event during the 101st Calgary Stampede rodeo in Calgary, Alberta, July 12, 2013. REUTERS/Todd Korol (CANADA - Tags: SPORT ANIMALS SOCIETY ANNIVERSARY TRAVEL) - GM1E97D0CHX01
  • AUM: $11.2 bln
  • PE Allocation: 12.1 pct
  • PE Target Range: 13 to 14 pct
  • Contact: Dan Villa, executive director, dvilla@mt.gov; main number: +1 406-444-0001

Montana Board of Investment at its April meeting made a commitment to a Silicon Valley-based Foundation Capital’s ninth fund.

Montana pledged $20 million to Foundation’s Fund IX, which focuses on technology markets, a person familiar with the deal told Buyouts. The fund is targeting $350 million, according to an SEC filing.

Foundation closed Fund VIII on $325 million in 2015.

Michael Nguyen, an investment officer for Montana, said the system has ramped up commitment activity in the past year.  Montana made $365 million in commitments in 2018, a noticeable increase from the $200 million-range from the previous five years, meeting documents show.

In October, Nguyen said  the board has a “soft target” of $350 million for its annual PE pacing plan, but that it “could go to $450 million or more given the opportunity set,” Buyouts previously reported.

Montana’s current private equity allocation is 12.1 percent of  the system’s total consolidated asset pension pool, with a target allocation range of 13 to 14 percent, according to board documents.

The $11.2 billion fund sold off a piece of its private equity portfolio in October in a secondary sale.

Montana sold its stake in 10 funds-of-funds that were managed by Adams Street Partners, including its $23 million share of GI Partners’ fourth fund, totaling $70 million, Buyouts previously reported.