Minnesota State Board of Investment, St. Paul, committed €150 million ($203 million) to European private equity fund Permira V and $200 million to Energy Capital Partners III, which invests in the North American energy market, confirmed Mansco Perry III, the board's executive director.
The commitment to Permira is the first by the board, which oversees $69 billion in assets, including $54.2 billion in state pension assets. The board previously committed $100 million to Energy Capital Partners II.
Also, the board terminated growth equity manager Knelman Asset Management, which ran $82 million for the board, because of SEC charges that the firm failed to follow the agency's custody rule, requiring it to maintain client assets with a qualified custodian or use an independent accountant to conduct surprise exams. The portfolio was liquidated.
Knelman Asset, in October, agreed to pay a $60,000 penalty to the SEC, and Irving P. Knelman, the firm's CEO and chief compliance officer, agreed to pay a $75,000 penalty and was barred from acting as a CCO for at least three years, according to an SEC statement.
Officials at Knelman Asset Management couldn't be reached for comment.