Minnesota State Board of Investment slates $900 million for alternatives

Updated with correction

Minnesota State Board of Investment, St. Paul, committed a total of $900 million to six existing alternative investment managers and one new firm, confirmed Mansco Perry III, executive director and chief investment officer.

At a board meeting March 1, trustees approved the recommendation of the SBI's investment advisory council to commit $150 million each to four new private equity funds offered by existing managers: Advent Global Private Equity IX, a buyout fund managed by Advent International; Blackstone Capital Partners VIII, a buyout fund managed by Blackstone Group; Summit Partners Growth Equity Fund X; and Varde Fund XIII, a distressed debt fund managed by Varde Partners.

Also in private equity, the investment board committed $100 million each to Oak Hill Capital Partners V, a new buyout fund offered by an existing manager, and to Arsenal Capital Fund V, a buyout fund managed by Arsenal Capital Partners, a new manager for the investment board.

The board also approved a commitment of $100 million to existing real estate manager Rockpoint Group's Rockpoint Real Estate Fund VI.

Mr. Perry also said TIAA-CREF Tuition Financing was rehired to provide record-keeping services and investment options for the $1.3 billion Minnesota College Savings Plan. The SBI and the State Board of Higher Education, St. Paul, have joint oversight of the state's 529 plan, he said.

The Minnesota SBI manages about $94 billion in state funds, including $67 billion for public pension funds.