Washington State Investment Board commits up to $1 billion to alternatives
By Kevin Olsen | November 16, 2012 3:24 pm
Washington State Investment Board, Olympia, committed up to a total of $1 billion in four alternatives funds, confirmed board spokeswoman Liz Mendizabal in an e-mail.
The board, which oversees $64 billion in pension assets, committed up to $400 million to First Reserve Fund XIII, a global energy-focused private equity fund managed by First Reserve Corp.; up to $300 million to TowerBrook Investors IV, a private equity fund managed by TowerBrook Capital Partners; and up to $150 million each to Riverside Capital Appreciation Fund VI, a middle-market buyout fund managed by the Riverside Co., and RK Mine Finance (Master) Fund II, a fund that will invest in low-cost, lower-risk mining projects that is managed by the Red Kite Group.
The Red Kite Group commitment is part of the board's tangible assets program. It is the board's first commitment with the manager.
The board has committed a total of $1.05 billion to five other First Reserve funds; it is the first commitments with TowerBrook and Riverside.
Private equity consultant Hamilton Lane assisted.
The investment board has a 5% target allocation to tangible assets and a current allocation of 1.28%, as of Sept. 30. The private equity target and current allocations are both around 25%.