Washington State Investment Board, Olympia, approved or disclosed a total of up to $2.5 billion in alternative fund commitments and investments at its meeting on Thursday, spokeswoman Tish Day said in an email.
The board, which oversees $181.7 billion in assets, including $149.3 billion in its commingled trust fund of defined benefit plan assets, was informed of staff-delegated commitments of up to $750 million each to buyout fund Hellman & Friedman Capital Partners XI and TA XV, a middle-market buyout fund managed by TA Associates; up to $400 million to Searchlight Capital IV, a buyout fund managed by Searchlight Capital Partners; and up to $200 million to software and technology-focused growth equity fund PSG VI.
Also at its meeting Thursday, the board approved a commitment of up to $150 million to Asia-focused buyout fund TPG Asia VIII.
All are existing private equity managers for the investment board. Recent commitments to the managers include up to $1 billion to Hellman & Friedman Capital Partners X in 2020, up to $525 million to TA XIV in 2021, a total of up to $300 million to Searchlight Capital III in 2019 and 2020, up to €175 million ($192 million) to PSG Europe II in 2022 and up to $250 million to TPG's The Rise Fund III, also in 2022.
As of Dec. 31, the commingled trust fund's actual allocation to private equity was 28.2%.
Also for its innovation portfolio, the board was informed of a commitment of up to $150 million to Monarch Capital Partners VI, a distressed situations and opportunistic credit fund managed by Monarch Alternative Capital. WSIB previously committed up to $200 million to Monarch Capital Partners V in 2020.
As of Dec. 31, the actual allocation to innovation was 1%.
For its tangible assets asset class, the board was informed of an investment of up to $100 million to Sprott Private Resource Streaming and Royalty Annex, which invests alongside the remaining uncalled capacity of Sprott Private Resource Streaming and Royalty, a hedge fund that targets income-focused investments within the metals/mining sector. WSIB invested up to $200 million to the latter fund in 2019.
As of Dec. 31, the actual allocation to tangible assets was 6.5%.