Searches and Hires

Alaska Permanent allocates $1.87 billion in fourth quarter

Alaska Permanent Fund Corp., Juneau, made a total of $1.87 billion in new manager hires, commitments and direct investments during the fourth quarter, according to a report for the fund's board meeting earlier this week.

The $64.5 billion sovereign wealth fund hired Arrowstreet Capital, WCM Investment Management and CDAM to run $400 million, $200 million and $150 million, respectively, in global equities. The three managers join Richard Bernstein Advisors, which was hired to run $200 million in active global equities, giving the global equity portfolio a total of $10.6 billion, or 16.4% of the total fund.

The sovereign wealth fund also added $1 billion to its fixed-income-plus portfolio, giving it $13.7 billion as of Dec. 31. APFC used the cash to "increase our relative exposure to emerging market and global government bonds while reducing our relative exposure to cash and (Treasury inflation-protected securities)," according to the report. Most of the fixed-income-plus portfolio is internally managed.

Funding for the global equity hires and fixed-income-plus addition comes from public equity redemptions totaling $1.875 billion from 14 external managers: $300 million from a global equity portfolio managed by Lazard Asset Management, leaving it with $1.9 billion; $250 million from a global equity portfolio managed by AQR Capital Management, leaving it with $1.6 billion; a total redemption of the $275 million international growth equity portfolio managed by State Street Global Advisors, and $150 million from an SSGA domestic large-cap growth equity portfolio, leaving it with $313 million; $150 million from an international equity portfolio managed by Acadian Asset Management, leaving it with $724 million; $150 million from a global equity portfolio managed by McKinley Capital Management, leaving it with $729 million; and $75 million each from eight other equity managers.

Those equity managers, the types of portfolios and their new portfolio sizes as of Dec. 31, are CastleArk Management, domestic large cap, $310 million; Eagle Asset Management, domestic small cap, $223 million; Jennison Associates, small cap, $219 million; LMCG Investments, emerging markets, $100 million; Macquarie Investment Management, emerging markets, $248 million; Pzena Investment Management, domestic small cap, $223 million; RBC Global Asset Management, domestic small cap, $198 million; and T. Rowe Price Group, domestic small cap, $221 million.

APFC also redeemed a total of $75 million from three internally managed SPDR Russell 1000 exchange-traded funds, leaving those with $1.2 billion.

For its $7.6 billion private equity and growth opportunities portfolios, the fund committed a total of $417 million to nine managers: $75 million to Patria Brazilian Private Equity Fund VI, a buyout fund managed by Patria Investments; $59 million to Novalpina Capital Partners I, a buyout fund; $50 million each to Clearlake Capital Partners V, a special situations fund managed by Clearlake Capital Group, and Whitehorse Liquidity Partners II, secondary private equity fund of funds; $48 million to Charlesbank Equity Partners IX, a buyout fund managed by Charlesbank Capital Partners; $40 million each to H.I.G. Advantage Buyout Fund, managed by H.I.G. Capital, and Spectrum Equity VIII, a growth equity fund; $37 million to EnCap Flatrock Midstream Fund IV, an oil and gas fund; and $18 million to WestView Capital Partners IV, a buyout fund. APFC also made a direct private equity investment of $23 million in Foundation Health.

For its $3.5 billion infrastructure, private credit and income opportunities portfolios, APFC committed $561 million to seven managers. The fund committed $200 million to LS Power Equity Partners IV, an infrastructure fund managed by LS Power Group; $100 million each to BroadRiver III, a private credit fund managed by BroadRiver Asset Management and InfraRed Infrastructure Fund V, managed by InfraRed Capital Partners; $50 million each to Atalaya Asset Income Fund IV, a direct lending fund managed by Atalaya Capital Management, and Monroe Capital Private Credit Fund III (Unleveraged), also a direct lending fund; $38.5 million to Alchemy Special Opportunities Fund IV, a distressed debt fund managed by Alchemy Partners. The fund also allocated another $22.5 million to EnCap Flatrock Midstream Fund IV as part of its infrastructure portfolio. APFC also made direct investments of $100 million in Equis Energy, a Singapore-based developer of renewable energy projects, and $19 million in Twin Creeks Timber, a joint venture formed by Silver Creek Capital Management to invest in timber assets alongside a timberland operator.

Paulyn Swanson, APFC spokeswoman, could not be immediately reached.