North Dakota State Investment Board, Bismarck, hired 50 South Capital to manage $250 million in an in-state investment program for the $8.2 billion Legacy Trust Fund, said David J. Hunter, executive director and chief investment officer of the North Dakota Retirement & Investment Office.
The hiring is the result of the board's creation earlier in 2021 of a new target allocation of 3% to private capital with a focus on in-state investments for the legacy fund, an endowment fund for oil and gas tax revenue.
It was funded by slight drops in the targets to broad domestic equities to 28% from 30% and broad international equities to 19% from 20%.
GCM Grosvenor and Sun Mountain Capital were the other finalists in the board's shortlist search.
Investment consultant Callan assisted.
Separately, the board committed a total of $200 million to Invesco U.S. Value-Add Fund VI, a value-added real estate fund. The commitment is to be split evenly between the legacy trust fund and the state's $6.4 billion pension assets pool.
The board has made commitments to four previous Invesco value-added real estate funds, most recently committing $70 million to Invesco U.S. Value-Add Fund V in 2019.