Trustees of the $127.9 billion Minnesota State Board of Investment, St. Paul, approved the recommendation of the SBI's investment advisory council to commit a total of $1.1 billion to eight private markets funds from the state's $89.9 combined defined benefit plans, during a meeting Wednesday.
From the combined pension fund's $23.9 billion private markets portfolio, which includes private equity, private credit and other alternative strategies, a total of $870 million was earmarked for six private equity managers.
The largest private equity commitment — $300 million — was given to Warburg Pincus Global Growth 14, which will seek investment opportunities in sustainable value companies.
A commitment of €150 million ($170 million) was awarded to Permira VIII, a mid- to large-cap buyout fund managed by Permira Advisers.
Commitments of $100 each were awarded to four other private equity funds: Arsenal Capital Partners VI; a buyout fund; Blackstone Strategic Partners Fund IX, a secondaries fund managed by Blackstone Group; Lexington Capital Partners X, a secondaries fund managed by Lexington Partners; and Whitehorse Liquidity Partners V, a secondaries fund.
SBI trustees also approved a $100 commitment to Marathon Secured Private Strategies Fund III, run by private credit manager Marathon Asset Management.
The SBI's investment officers also committed $100 million to Landmark Partners' Landmark Real Estate Fund IX, whose portfolio managers will seek to make secondary investments in various real estate sectors.
In addition to the combined pension fund, SBI investment officers also manage state defined contribution plans with assets totaling $10.1 billion. The balance of the SBI's assets are managed in other state funds.