Alaska Permanent Fund Corp., Juneau, committed a total of up to $1.75 billion to Carlyle Group and Blackstone Group, with half of the money committed to co-investments, confirmed Mike Burns, executive director.
The $46.6 billion sovereign wealth fund committed $500 million to Blackstone Strategic Holdings Fund, a private equity fund that invests in minority stakes of hedge fund general partnership interests. It also committed an additional $500 million for co-investments in the strategy.
Alaska Permanent also committed up to $375 million to two or three Carlyle private equity funds. It has targeted investments in Carlyle International Energy Partners and NGP Natural Resources XI. A yet-to-be-formed agribusiness or metals and mining fund might also receive an allocation.
Mr. Burns said the sovereign wealth fund also committed up to $375 million for co-investments with Carlyle, focusing on the natural resource, metals and energy sectors. The specific funds for the investments have not been determined, he added.
It is expected the commitments will be drawn down over a three-year period. Funding will come from reductions in domestic equity as well as the cash portfolio; no managers will be terminated.
Investment consultant Callan Associates assisted with the Carlyle deal. Crestline Investors assisted with the Blackstone deal.
Separately, the sovereign wealth fund entered into an agreement with real estate adviser CS Capital Management to seek out a partnership to acquire up to $100 million in U.S. industrial real estate.
