The Alaska Permanent Fund has selected fund of funds specialist HarbourVest to manage a separate account dedicated exclusively to private equity.
The $27.9 billion fund, which invests revenue from the state’s considerable mineral and oil concessions, has directed Boston-based HarbourVest to manage a private equity portfolio with a “discretionary, broadly diversified global mandate”, according to a statement from the fund.
HarbourVest is the second gatekeeper Alaska Permanent has hired since it initiated its private equity allocation in 2004. Pathway Capital Management currently manages two private equity portfolios for the fund.
In a separate action, Alaska Permanent approved a minimum $200 million commitment to HarbourVest and Pathway for each of the next five years. The fund also voted to increase the maximum number of non-US private equity partnerships to 40 percent of its portfolio.
The HarbourVest account is one of the oil fund’s first major moves ramping up its nascent alternatives programme since it appointed former Microsoft executive Jeffrey Scott as chief investment officer last month.
In June, Alaska Permanent approved a 2 percent increase in its private equity and absolute return allocation, from 4 percent to 6 percent. The fund currently has $2.9 billion invested in alternatives.