The $3.5 billion Montana State Board of Investments, Helena, committed $100 million to KKR's 1996 buy-out fund, said Chuck Hunter, investment research manager and head of alternative equities. The $100 million commitment is up from previous commitments of $25 million each to KKR's 1987 and 1993 funds. Mr. Hunter explained the increase saying that after looking at the timing of cash flows to and from private funds like KKR's, the Montana board wasn't getting its full commitment invested at any one time.
He said he expects an annualized return of about 20% on the KKR fund.
