Alaska’s national oil fund, the $37.5 billion (€23.9 billion) Permanent Fund Corporation, has committed $750 million to two infrastructure funds.
The fund’s board of trustees yesterday approved a $500 million commitment to Goldman Sachs’ second infrastructure vehicle, which according to media reports is targeting $7.5 billion, and $250 million to Alinda Capital Partners’ second infrastructure fund, Alinda II, which is targeting $5 billion, according to the Probitas Partners 2008 Private Equity Deskbook.
Goldman closed its first infrastructure fund on $6.5 billion in 2006. Alinda, which specialises in transportation, energy, power, water, wastewater and utility services, closed its debut fund on $3 billion last year.
The Alaskan fund is also committing $400 million to private equity funds through the creation of a single investment vehicle, to be set up by investment firm Pathway Capital Management. The buyout fund of funds – to which only Alaska can contribute – will specifically target private equity funds investing in companies valued at $1 billion or less.
Alaska’s current private equity portfolio is concentrated on funds that invest in companies larger than the $1 billion threshold.
Famous for making direct disbursements to Alaskan residents from the state’s oil and mineral revenues, the Alaskan fund launched its private equity portfolio only four years ago. Last month, the fund upped its target allocation for alternative assets to 6 percent, while cutting back its exposure to domestic equity and fixed-income investments.
The fund’s infrastructure allocation is three percent. Real estate has a target allocation of 10 percent. The alternatives allocation is currently valued at $3 billion, while its real estate allocation is valued at $4.2 billion, according to the fund’s website.