Minnesota pension grows private markets exposure by nearly $1bn

St. Paul-based Minnesota State Board of Investments approved on December 2 commitments across seven investment firms in a bid to continue to grow its private market investment exposure across its $99.5 billion portfolio. The allocations total $950 million and include allocations to two new managers and allocations to private equity, distressed/opportunistic strategies, real estate and private credit. Officials said that private markets commitments can total a maximum of 20% of the underlying fund assets. Currently private markets accounts for 15.2% or roughly $10 billion of Minnesota’s overall portfolio, but carries a target allocation of 25% or $25 billion – which means another $15 billion could still be put to work in the asset class. Private equity managers received the greatest influx of capital in December totaling $550 million. Existing managers Lexington Partners, Leonard Green & Partners and Madison Dearborn Partners all received additional capital. Lexington Partners was awarded a $100 million mandate for its Co-Investment Partners V Overage Program, which is part of the $38 billion firm’s long-time co-investment business that has been embraced by public pensions including the Florida State Board of Administration in Tallahassee. Leonard Green & Partners received a $150 million commitment to it Green Equity Investors VIII, which is the latest in a line of buyout funds from the Los Angeles-based firm. Madison Dearborn Capital Partners VIII received a $100 million commitment. A new private equity portfolio manager is Vista Equity Partners Management, which will handle $200 million in its Vista Equity Partners Perennial Fund. The software industry fund last month invested in Accelya, a global provider of financial, commercial and analytics solutions to the airline and travel industry. Another new manager is private credit firm HPS Investment Partners, which will now manage $100 million in its HPS Mezzanine Partners 2019. Meanwhile, existing portfolio manager Marathon Asset Management received a $200 million mandate for its Marathon Distressed Credit Fund I as part of Minnesota’s distressed and opportunistic portfolio. US Real Estate specialist Rockwood Capital is also going to manage an additional $100 million in its Rockwood Capital Real Estate Partners Fund XI.

Continue Reading With a Free Trial

Be an Alts Watcher

Subscribe to our mailing list and know first!

CAIS launches AI tool for financial advisors

Jain named global head of private debt at Pantheon

Related Articles

Marquette’s Kweku Obed on financial literacy and the search for yield that makes a difference

Connecticut taps K2 for HF risk mitigation strategy

Altimeter, Thiel buy SE Asia companies via SPACs

Maverix closes inaugural fund at $500m

Get our daily news digest in your inbox

Get our daily news digest
in your inbox