Alaska makes $500m in mezzanine commitments

The $34bn oil and gas endowment will commit $250m each to mezzanine funds run by Oaktree and Audax.

The Alaska Permanent Fund, the state’s $34 billion oil and gas endowment, is ramping up its commitment to mezzanine investments with a $500 million allocation to funds run by Oaktree Capital Management and Audax Group.

APF is committing $250 million to OCM Mezzanine III, which is targeting $2.5 billion. The endowment also invested $250 million in Audax Mezzanine III, with a target of $750 million.

Oaktree established its mezzanine finance team in 2001, focused on mid-market deals. The team has $1.4 billion under management. Oaktree’s mezzanine team is led by Bill Sacher.

Audax’s mezzanine group invests in subordinated and junior securities of mid-market companies. The firm’s mezzanine team is led by Kevin Magid, Peter Gummeson, Steven Ruby and Rahman Vahabzadeh.

APF has about $3.2 billion invested in alternatives, and an allocation of about 6 percent to private equity. The fund also has allocation caps of 12 percent to real estate, 3 percent to infrastructure and 1 percent to distressed debt.