Minnesota State Board of Investment, St. Paul, on Wednesday approved a total of up to $600 million in commitments to five private equity managers.
The board, which oversees $77 billion in state pension and other assets, committed up to $100 million to Madison Dearborn Capital Partners Fund VII, a buyout and growth equity fund managed by Madison Dearborn Partners. It’s the board’s first investment with Madison Dearborn, said Mansco Perry III, the board’s executive director and chief investment officer.
The remaining commitments were made to four private equity funds managed by firms that already run MSBI assets in other investments. Up to $150 million each was committed to private equity funds KKR North America Fund XII, a buyout fund managed by KKR & Co., and Energy & Minerals Group Fund IV, which invests in natural resources. Also, up to $100 million each was committed to Advent Global Private Equity VIII, a developed markets fund run by Advent International, and Merit Mezzanine Fund VI, managed by Merit Capital Partners.
The board previously committed to seven KKR funds, three each from EMG and Merit, and two from Advent.
MSBI has an 11% allocation to private equity.
The commitments had been recommended by the board’s investment advisory committee at a Nov. 17 meeting.