North Dakota State Investment Board, Bismarck, approved a commitment of $200 million to GCM Grosvenor Customized Infrastructure Strategies III, said David J. Hunter, executive director and chief investment officer of the North Dakota Retirement & Investment Office.
The board, which oversees a total of $18.5 billion in assets, previously committed $105 million to GCM Grosvenor Customized Infrastructure Strategies II.
Funding for the new commitment will come from the three funds the board oversees: the $8.2 billion Legacy Trust Fund, $6.9 billion Pension Trust Fund and $3.2 billion Insurance Trust Fund.
Separately, the board approved a new 3% target allocation to private capital, with a focus on in-state investments, for the North Dakota Legacy Fund.
The legacy fund is an endowment fund for oil and gas tax revenue created in 2010. Mr. Hunter said its advisory board requested the asset allocation change following phase one of an asset allocation study recently completed by investment consultant Callan.
The new target will allow the fund to further expand the Legacy Fund's in-state investments. Mr. Hunter said the advisory board and state investment board has doubled the size of its in-state investments to $400 million from $200 million over the past two years.
The new target is funded by slight drops in the targets to broad domestic equities to 28% from 30% and broad international equities to 19% from 20%.
The legacy fund's targets of 35% to domestic fixed income and 5% each to infrastructure, real estate and Treasury inflation-protected securities will remain unchanged.
As of Dec. 31, the legacy fund's actual allocation was 51.5% global equities, 33.9% global fixed income, 13.8% global real assets and 0.8% cash equivalents.
