The Nebraska Investment Council has invested an additional $115 million (€78 million) in alternatives including a commitment of $40 million to two private equity funds.
The institutional investor committed $25 million to New Mountain Partners III, a mid-market fund that has already held a first close on $3 billion, and $15 million to Wayzata Opportunities Fund II, a distressed debt fund with a $2.5 billion target.
It also committed $75 million to BlackRock Mortgage Investors Fund, a closed-end fund that has also attracted a $500 million commitment from the Pennsylvania Public School Employees’ Retirement System.
The investments were approved in November 2007 and made public on 12 February 2008.
The $15.3 billion NIC is responsible for managing the investments of 30 different entities throughout the state including defined benefit plans and endowment funds. Its alternatives allocation is 10 percent of total assets with 5 percent going to private equity funds and 5 percent going to real estate funds.
The NIC’s private equity programme was launched in 2006 and has largely consisted of fund of fund commitments. Chicago-based firm Ennis Knupp is the NIC’s investment consultant.