Minnesota State Board of Investment, St. Paul, on Thursday approved commitments totaling up to $775 million to five private equity funds and one distressed credit fund, subject to successful contract negotiations, said Mansco Perry III, the board’s executive director and chief investment officer. It also hired six emerging markets equity managers.
The board, which oversees $80.9 billion in state pension and other assets, approved the following private equity commitments:
- up to $175 million to Dyal Capital Partners Fund III, a buyout fund managed by Neuberger Berman that takes minority stakes in money managers;
- up to $150 million each to West Street Capital Partners Fund VII, a global fund managed by Goldman Sachs’ merchant banking division; and Oak Hill Capital Partners Fund IV, a midmarket fund; and
- up to $100 million each to two secondary funds: Goldman Sachs Vintage Fund VII, managed by Goldman Sachs Asset Management, and Lexington Middle Market Investors IV, managed by Lexington Partners.
Also, the board approved committing up to $100 million to Merced Partners V, a distressed credit fund managed by Merced Capital.
MSBI had $7.6 billion in private markets investments as of Sept. 30.
Separately, the board also approved hiring six active emerging markets equity managers to run an as-yet undetermined amount of assets.
The firms hired were Delaware Investments, EARNEST Partners, Martin Currie Investment Management, Neuberger Berman, Pzena Investment Management and Rock Creek Group’s emerging markets fund of funds.
Funding will be determined by Mr. Perry once contracts have been successfully negotiated.
