Minnesota State Board of Investment, St. Paul, approved a total of $650 million in commitments to seven alternatives funds, subject to contract negotiations, said Mansco Perry III, executive director.
The board, which oversees $80.3 billion in assets, on Wednesday approved committing $150 million to Blackstone Real Estate Partners Fund VIII, managed by Blackstone Group; $100 million each to Avenue Energy Opportunity Fund, managed by Avenue Capital Group, which targets North American energy and utility companies, and EnCap Energy Capital Fund X, an oil and gas fund managed by EnCap Investments; and $75 million each to MHR Institutional Partners IV, a distressed debt fund managed by MHR Fund Management that targets middle-market companies in the U.S, and KKR Lending Partners IV, managed by KKR & Co..
Also, the board made commitments to two Oaktree Capital Management distressed debt funds — $100 million to Oaktree Opportunities Fund X and $50 million to Oaktree Opportunities Fund Xb.
The Avenue Capital and MHR commitments are the first made by the board to either firm, Mr. Perry said. The board has committed to prior funds from the other four firms.