Alaska Permanent Fund Corp., Juneau, hired Apollo Global Management to run a $750 million strategic partnership in private credit, spokeswoman Laura Achee said in an e-mail.
Apollo is the second manager to be added to the $51.3 billion sovereign wealth fund’s external private markets outsourced CIO program. The Carlyle Group was hired in July.
As part of the $750 million strategic partnership, the sovereign wealth fund committed $200 million to Apollo Credit Opportunity Fund III and up to $75 million to its Structured Credit Recovery Fund III.
The sovereign wealth fund invested up to $75 million in Apollo Credit Strategies Master Fund, a hedge fund.
The sovereign wealth fund also allocated an additional $175 million to Apollo for unconstrained credit investments, $100 million for direct investments and $125 million for co-investments.
Investment consultant Callan Associates assisted.
Also at its board meeting Wednesday and Thursday, Alaska Permanent committed $100 million to ARCH Venture Fund VIII, a venture capital fund focused mainly on life and physical science companies and managed by ARCH Venture Partners.
Separately, the board approved committing $800 million to private equity, $400 million to infrastructure and up to $100 million to private credit investments for fiscal year 2015, starting July 1. The private equity and infrastructure commitments include up to $200 million each in co-investments.
The sovereign wealth fund also committed an additional $160 million to American Homes 4 Rent, a fund that purchases packages of vacant homes and manages them as rental properties. It committed $600 million to the fund in 2012.
All allocations will be funded by the sovereign wealth fund’s cash portfolio or a rebalancing of its equity portfolio, Ms. Achee wrote.
“No investments are targeted to be eliminated,” Ms. Achee wrote.