Alaska Permanent PE returns hit historic high

The $64bn sovereign wealth fund's internally managed direct and co-investment programme helped drive the private equity and special opportunities portfolio returns, which has delivered a net IRR of 68% since inception five years ago.

The private equity portfolio is now valued at $7.3bn, representing 11.2% of assets, roughly equal to APFC's target allocation of 11%.

The private equity component is well diversified by strategy, geography and industry, and comprises venture capital, buyouts, special situations and distressed debt.

The special opportunities portfolio focuses on theme-driven investments, including directly sourced venture capital, private equity transactions and large co-investments alongside GPs.

The fund has recently committed $36m to Battery Ventures XII and $26m to Holtzbrinck Ventures Fund VII. Other recent commitments include NorthEdge Capital SME Fund I.

During the financial year, Alaska also formed Capital Constellation, a joint venture between the Public Institution for Social Security of Kuwait, RPMI Railpen, and Wafra. The JV was formed to provide initial capital to alternative investment managers. Up to $1.5bn is expected to be deployed over the next five years to at least 10 alternative managers.

The platform closed a $150m strategic partnership with Ara Partners, a private equity firm focused on energy and industrials investments last month.

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• Topics
• LPs
• Performance
• Fund performance
• Battery Ventures
• Holtzbrinck Ventures
• NorthEdge Capital