Fundraising

Alaska approves $400m infra allocation

The Alaska Permanent Fund Corporation’s Board of Trustees approved several private asset investments at a recent board meeting, including $400m allocated to infra.

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The board of trustees of the state-owned Alaska Permanent Fund Corporation (APFC) approved a number of private asset allocations at a recent meeting, including $400 million to infrastructure. Up to $200 million of the $400 million total can be co-invested, APFC said in a statement.

The Corporation, however, did not provide further details about which vehicles or infrastructure funds it will choose to invest in.

“The Board has authorised this funding for staff to source attractive opportunities in the upcoming fiscal year,” said Laura Achee, communications director at the Alaska Permanent Fund.

The $400 million allocation is in line with past years, the board said in its statement. As of March 31, the Alaska Permanent Fund’s infrastructure investments were valued at $1.3 billion. The fund’s target allocation for infrastructure is 4.0 percent of the $51.39 billion portfolio.

APFC manages the investments of the Alaska Permanent Fund, which was established in 1976 by a constitutional amendment to protect revenue generated by the state’s oil industry.

“At least 25 percent of all mineral lease rentals, royalties, royalty sales proceeds, federal mineral revenue-sharing payments and bonuses received by the state be placed in a permanent fund, the principal of which may only be used for income-producing investments,” according to the APFC website.

The Corporation was established four years later to manage the fund’s investments. Today, it also manages the assets of other funds designated by law, such as the Alaska Mental Health Trust Fund.

In May 2013, APFC closed a co-investment deal with Global Infrastructure Partners, acquiring 35 percent of Terminal Investment Limited for $1.93 billion. The Corporation has set aside $5 billion to put toward illiquid co-investments.

Alaska began allocating to infrastructure funds in 2007, committing $500 million to Citi Infrastructure Investors, $500 million with Goldman Sachs Infrastructure Partners II and $350 million to GIP.

In addition, APFC invested $40 million with EQT Infrastructure II, helping to seal its $1.5 billion final close.