Alaska Permanent Fund Corp., Juneau, invested $500 million in Pathway/AK Credit Co-Investment Fund, a new joint partnership between the $65.4 billion sovereign wealth fund and Pathway Capital Management.
The partnership is part of APFC's new $1 billion hybrid credit portfolio called Alaska direct alternative credit, which includes the new co-investment fund as well as a "liquid portfolio of internally managed non-investment-grade bonds and ETFs," a news release said.
The co-investment fund will focus on "building a diversified portfolio of co-investments for ADAC's private portfolio, across a range of strategies, managers and geographies."
"The private portfolio within ADAC represents another example of the APFC using its scale, strategic external partnerships, and in-house expertise to create a compelling investment opportunity," said Jared Brimberry, senior portfolio manager, in the news release. "We are excited to build a diversified credit portfolio alongside top-tier managers, with the benefit of removing an additional layer of fees."
Pathway Capital Management has long served as one of APFC's consultants for private market and special opportunity investments, which comprise private equity, private credit, infrastructure and other real assets.
As of April 30, the sovereign wealth fund's infrastructure and income opportunities allocation, which includes private credit, was 6.6%.