Alaska Permanent forges ahead with secondaries sale – exclusive

The $66bn sovereign wealth fund is inviting bids on a portfolio comprised around 40% of infrastructure funds.

Details of Alaska Permanent Fund‘s plans to offload a portfolio of private fund stakes have emerged, one year after the investor began exploring a potential secondaries process, sister publication Secondaries Investor has learned.

The $65.6 billion state sovereign wealth fund is working on the process with Evercore, according to three sources familiar with the matter. As much as $2 billion of stakes were initially evaluated for sale, though the transacted amount is likely to be around $500 million, according to one of the sources.

This is understood to be Alaska’s second trip to the secondaries market in two years.

Indications of interest are due over the next few weeks, one of the sources said.

Infrastructure accounts for around 40 percent of the portfolio, Secondaries Investor understands. Private equity accounts for the majority, with mezzanine stakes also included.

Secondaries Investor reported in February that Alaska was to explore what price it could achieve with a secondaries sale. In April 2018 it sold a $750 million portfolio of stakes to Ardian, including stakes in the 2006-vintage Montagu III, the 2011-vintage Montagu IV and the 2013-vintage IK VII, Secondaries Investor reported.

Alaska has $8.7 billion invested in private equity, equivalent to 13.5 percent of assets under management as of 30 June, according to its latest annual report.

The sale comes as the Juneau-headquartered SWF prepares to increase its private equity exposure. Alaska wants to grow its private equity allocation to as much as 20 percent from 13 percent over the next five years, chief investment officer Marcus Frampton told Bloomberg in November.

There was $42 billion-worth of secondaries transaction volume in the first half of last year, 66 percent of which was LP-led, according to a December secondaries market update by advisor Greenhill.

Alaska and Evercore declined to comment.

– Adam Le contributed to this report.