Last year, the Montana Board of Investments pledged to non-control distressed debt funds
The $6 billion limited partner has a target allocation to private equity of 12 percent, with a range of 9 percent to 15 percent. As of April 30, the limited partner’s actual private equity allocation was approaching 12 percent. Buyout funds comprise almost half of the LP’s private equity portfolio, with the remainder split among the venture capital, distressed, special situations and mezzanine subgroups. Geographically, the portfolio is mostly U.S.-based, with about 14 percent of the LP’s private equity investments dedicated to Europe and 5 percent to Asia.
Although the program commits mostly to direct private equity funds, it also steers capital to funds of funds and secondary vehicles. However, according to a pension fund document, Montana will, in the future, likely limit its use of funds-of-funds managers to accessing international private equity and domestic venture capital, and will probably make fewer secondary commitments.