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Minnesota State Board makes $943 million in commitments to 7 managers

Minnesota State Board of Investment, St. Paul, on Wednesday approved commitments totaling up to $943 million to a variety of alternative investment funds, subject to successful contract negotiations, according to a board statement.

The board, which oversees $85 billion in state pension and other assets, made private credit commitments of up to $200 million to KKR Lending Partners III, managed by KKR & Co., and up to $100 million to Avenue Energy Opportunities Fund II, managed by Avenue Capital Group. It also made private equity commitments of up to $200 million to Lexington Co-Investment Partners IV, managed by Lexington Partners, and €150 million ($168 million) to Nordic Capital Fund IX.

Also, the board committed up $100 million each to Asia Alternatives Capital Partners Fund V, a private equity fund of funds managed by Asia Alternatives Management, and BlackRock (BLK) Global Renewable Power Fund II; and up to $75 million to Lubert-Adler Real Estate Fund VII-B. The commitments to the three funds are MSBI's first.

KKR, Avenue Capital, Lexington and Nordic all manage MSBI assets in other funds.

The commitments were recommended by the board's investment advisory committee at a meeting on May 15. Funding for the commitments has not yet been determined, said Mansco Perry III, the board's executive director and chief investment officer.