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Minnesota SBI to commit up to $650m to six funds

The pension fund has been committing between $400m and $500m to alternative assets every year.

The Minnesota State Board of Investment is understood to have approved new commitments totaling $650 million to six private equity funds.

At the 18 August meeting of SBI’s advisory council, the following funds and maximum commitment amounts were approved: $150 million to Warburg Pincus XII, $100 million to Summit Partners Growth Equi IX, $100 million to Audax Mezzanine IV, $100 million to Brookfield Capital Partners IV, $100 million to Thomas H. Lee VII and $100 million to TPG Partners VII.

These recommendations are subject to the board and executive director approvals. The board will meet on 9 September.

As of 15 June, SBI had allocated 6.73 percent of its $80 billion fund to private equity.

According to the 2014 annual investment report, SBI approved and closed on commitments with Banc Funds, Strategic Partners, CVC, GTCR, IK Investment Partners, Lexington Capital Partners, Merced Partners, Nordic Capital, Permira, PPC and Varde in the fiscal 2014 year.

PEI Research & Analytics indicates that SBI has been committing $400 million to $500 million on average to North American alternative assets every year.

Earlier this year, the SBI approved commitments of up to $150 million each to Blackstone Capital Partners VII and CVI Credit Value Fund III, according to PEI Research & Analytics.