Minnesota State Board of Investment, St. Paul, approved up to $1 billion in commitments to private equity and natural resources funds.
According to recently released minutes of the board's Sept. 11 meeting, the board approved commitments of up to $200 million each to private equity buyout funds GTCR Fund XI; IK VII, managed by IK Investment Partners, which focuses on midmarket companies in Scandinavia, Benelux countries, France and Germany; and Nordic Capital Fund VIII, which focuses on Nordic countries; and similar commitments to natural resource funds First Reserve Fund XIII, an energy infrastructure fund managed by First Reserve Management; and EIG Energy Fund XVI, an energy fund targeting the U.S., Canada, Western Europe and Australia run by EIG Global Energy Partners.
The board also increased its alternatives allocation target to a range of 20% to 24%, from the current 20% target. It had an actual 14.5% allocation to alternatives as of June 30, according to the board's website.
The decision to change the allocation target was recommended by the board's staff following a review, according to the minutes.
Separately, Howard Bicker, the board's executive director, said an RFP will be issued for a bundled provider of the $1 billion Minnesota College Savings Plan, St. Paul. The contract with TIAA-CREF, the 529 plan's current provider, expires in April 2014. No time frame was given for issuing the RFP.
The board oversees $68.6 billion in assets, including $52.1 billion for defined benefit plans.
Mr. Bicker could not be reached for further information.
