Minnesota State Board of Investment, St. Paul, committed a total of up to $1.4 billion to eight private market strategies run by existing money managers from the state's $80.1 billion combined defined benefit plans fund, an investment report showed.
All of the managers the board committed to are existing managers.
The largest aggregate allocation by asset class was to private equity with up to $650 million earmarked for investment in funds managed by four existing money managers from the SBI's $14.5 billion private equity portfolio.
Hellman & Friedman's HFCP XI large-cap buyout fund and Windjammer Capital Investors' Windjammer Capital VI, a middle-market fund, each received a commitment of up to $200 million.
Paine Schwartz Partners received a commitment up to $150 million for investment in Paine Schwartz Food Chain VI, which is focused on sustainable food-chain investing, while Goldner Hawn Johnson & Morrison received a commitment of up to $100 million for investment to Goldner Hawn VIII.
The combined fund's private equity portfolio accounted for 18.1% of its assets as of Dec. 31, according to the investment report.
The SBI doesn't set target allocations for the combined fund's private market portfolios, said a spokeswoman in an email.
From the combined fund's $1.9 billion real estate portfolio, the SBI's investment officers committed a total of up to $300 million to two real estate managers with up to $200 million earmarked for TA Realty Value-Add Fund. A commitment of up to $100 million was committed to Angelo, Gordon & Co.'s AG Asia Realty Fund V, a value-added fund focused on investment in Asia.
The real estate portfolio accounted for 2.4% of the combined fund's assets as of Dec. 31.
One private credit fund — Marathon Distressed Credit Fund II, managed by Marathon Asset Management — received a commitment of up to $250 million from the fund's $1.7 billion private credit portfolio.
The private credit portfolio accounted for 2.1% of the combined fund's assets as Dec. 31.
From the combined fund's $2.2 billion real assets portfolio, up to $200 million was committed to ECPV managed by Energy Capital Partners.
The real assets portfolio amounted to 2.7% of the combined fund's assets as of Dec. 31.
The SBI managed a total of $123.6 billion as of Dec. 31.
In addition to the combined defined benefit fund, the SBI also manages the Minnesota state participant-directed investment program, which totaled $12.5 billion as of Dec. 31, the investment report showed.
The balance of other funds managed by the SBI at the end of 2022 included $900 million of fire relief plans and other public retirement systems; the state's $5.2 billion non-retirement program; and state cash accounts totaling $24.9 billion.