Alaska Permanent looks to boost internal staff to bring some investments in-house

Alaska Permanent Fund Corp. will create three internally managed investment programs, confirmed spokeswoman Laura Achee.

The $47.1 billion Juneau-based sovereign wealth fund will create programs to internally manage public equity as well as absolute-return and private equity co-investments. The private equity program will be implemented first, but the fund first needs legislative approval to add staff for each program, Ms. Achee said in a telephone interview.

Board Chair Bill Moran said in a news release it makes “fiscal sense to bring investments in-house when we feel our ability is comparable to our external managers.”

Alaska Permanent already has in-house programs to manage non-U.S. bonds and infrastructure co-investments.

The board approved allocating up to $250 million for private equity co-investments using third-party co-investment fiduciaries and up to $200 million for internal co-investment decisions for fiscal year 2014, which starts July 1.

The board also authorized committing $775 million next fiscal year to its two private equity customized funds-of-funds managers — $450 million for HarbourVest Partners and $325 million for Pathway Capital Management.

The sovereign wealth fund will also commit an additional $400 million next fiscal year to existing infrastructure funds. The money will be allocated throughout the year at staff discretion. The infrastructure managers listed on the fund's website are Goldman Sachs Asset Management, Global Infrastructure Partners and Citi Infrastructure Partners.

Ms. Achee could not provide further information on the co-investment programs by press time.