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

  • 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.