Alaska Retirement Management Board, Juneau, plans to commit $530 million total to between 18 and 33 private equity funds in 2016, with a gradual annual increase, in order to reach a new 12% long-term private equity target, said a board meeting summary provided by Judith Hall, liaison officer.
Under the new annual private equity tactical plan approved at last week's board meeting, Pathway Capital Management and Abbott Capital Management, which have discretion to make investments in private equity funds on the board's behalf, are expected to commit $200 million each. Investment staff is expected to commit the remaining $130 million.
Last year, Abbott committed $175.7 million; Pathway, $193.7 million; and investment staff, $115 million for a combined $484.4 million.
The total commitment amount is expected to increase by $20 million or $30 million annually through 2020 in order to reach a new 12% private equity target by 2025. The current target is 10%.
New and existing managers will both be targeted for future commitments. Secondary partnership and co-investments will also selectively be considered.
Already this year, Abbott has committed and closed on $57.7 million (or 29% of its 2016 target) to eight funds on behalf of the board.
At the end of 2015, Pathway and Abbott managed $817 million and $761 million, respectively, on behalf of the board.
Further information on the private equity tactical plan could not immediately be learned.
The board oversees more than $26 billion in retirement assets.