The Alaska Permanent Fund’s private equity portfolio returned 15.3 percent during the 2013 fiscal year, though it missed its benchmark by about 5 percent. In 2012, the fund’s private equity portfolio returned 9.8 percent, according to the sovereign wealth fund.
The fund, which manages proceeds from the state’s natural resources, posted positive returns across all of its asset classes including its infrastructure investments, which returned 10.7 percent, the statement disclosed. The returns for its real estate investments are estimated to be around 10.3 percent, though they won’t be confirmed until September. This would be the third consecutive fiscal year real estate has posted positive returns.
The entire fund returned 10.5 percent and although it trailed its 11.4 percent benchmark, it beat the 2012 fiscal year’s returns which were flat, Michael Burns, the fund’s chief executive officer, said in the statement.
The Alaska Permanent Fund has started to form what it calls “special opportunity” relationships with GPs. It committed up to $1.75 billion to The Blackstone Group for access to hedge fund managers and to The Carlyle Group for natural resources and energy access, Private Equity International previously wrote. Burns told PEI that the fund is “looking at providers that have broad platforms”.
The sovereign wealth fund allocates about 6 percent of its $44.8 billion in assets under management to private equity, according to Burns.