Montana commits $100m to PE, VC

The $12.78bn retirement system has invested $100m across five funds since its February meetings.

The Montana Board of Investments has committed $100 million to private equity and venture capital funds since its February meeting, according to documents made available on its website.

The board, which manages $12.7 billion of the state’s public funds, made commitments to Centerbridge Partners, Tenaya Capital, Axiom Asia Private CapitalNorthgate and Cartesian Capital Group, with the largest commitment going to Axiom. 

Axiom received $25 million for its third fund of funds on 16 February. The fund closed on $1.15 billion earlier this year, sources told Private Equity International in March. Axiom has largely focused its investment strategy on China, India and Japan since spinning out of the Government of Singapore Investment Corporation in 2007. However, the firm has also explored commitments to funds investing in South Korea, Southeast Asia and Australia. 

Axiom’s second fund, which Montana had also committed to, was generating a 1.04x multiple and a 3.49 percent internal rate of return as of 31 December, according to state documents. 

Montana re-upped $20 million to Centerbridge’s second special credit partners fund. Centerbridge Special Credit Partners II had raised at least $1.95 billion on a $2 billion target as of 15 March, according to US Securities and Exchange Commission documents. The firm could not be reached for comment. 

The first Centerbridge special credit partners has performed well, generating a 16.84 percent IRR and 1.34x investment multiple, according to Montana. 

The Board of Investments invested $20 million in both Tenaya Capital VI and Cartesian’s Pangaea Two. Tenaya, a venture firm that specialises in the technology sector, typically invests $5 million to $10 million of mezzanine in software, consumer Internet, IT infrastructure, communications and electronics companies. Fund VI is targeting $300 million, according to SEC documents. 

Pangaea Two, which is registered with the SEC through parallel Delaware and Cayman Island-based vehicles, appears to be targeting $1.3 billion. The firm could not be reached for comment at press time. Cartesian’s first Pangaea fund raised $1.05 billion in 2007. 

Northgate Venture Partners VI generated Montana’s smallest reported commitment at $15 million. The Danville, California-based firm typically commits to North American, European and Japanese focused funds in addition to investing directly in venture capital companies across several industries, according to its website.