Alaska Permanent Fund Corporation is considering a secondaries sale worth north of $1 billion almost one year after it agreed to sell around $750 million of private equity fund stakes to Ardian.
The $61.9 billion sovereign wealth fund’s chief investment officer Marcus Frampton disclosed the potential sale during a webcast of the board of trustees’ Wednesday meeting.
Alaska will engage an agent to explore the premium that a sale could command, and it is likely to close in September or December, Frampton added.
Evercore advised Alaska on its previous secondaries sale that had multiple closes last year, the largest being a tranche of around $700 million, according to its 11-12 December meeting documents.
The Juneau-headquartered investor sold stakes in funds including the 2006-vintage €2.26 billion Montagu III, the 2011-vintage €2.55 billion Montagu IV and the 2013-vintage €1.4 billion IK VII to Ardian in its previous sale, UK regulatory filings show.
Alaska Permanent also disclosed commitments of $210 million across five private equity funds and $213 million to its direct and co-investments funds for the second quarter of fiscal year 2019 ending 31 December.
Commitments included $50 million to Arch Venture Partners’ 10th overage fund that closed at $600 million; $25 million across Lightspeed China Partners’ fourth and Select I funds that raised $560 million; $50 million to Boyu Capital‘s fourth fund targeting $3 billion; and $50 million to Altitude III Side Fund.
The SWF has not yet selected a manager for its $200 million in-state emerging manager programme, Frampton added. According to a request for information Alaska issued, a fund of funds manager would manage the in-state emerging manager programme on a discretionary basis. The manager would have expertise in identifying and supporting the growth of promising private equity and venture capital emerging managers.
Investments would be made in emerging managers with an in-state investment strategy that expects to deliver returns consistent with similar investments outside the state. The emerging manager must have a business presence in Alaska and an ability to raise capital from other institutional sources.
Alaska would also renew its investment commitments to emerging managers that demonstrated success in the initial phases of the programme.
Alaska Permanent’s $8.15 billion private equity and special opportunities portfolio generated the highest fiscal-first-half return among all asset classes, even as public market volatility drove down its returns to negative 3.19 percent, according to a February press release.
Alaska Permanent’s special opportunities portfolio returned 30.2 percent over one year, 19.7 percent over three years, 23.2 percent over five years and 16.5 percent since inception, as of 30 September.
The highest returns came from Alaska’s $1.5 billion co-investment programme that returned 47.4 percent over one year, 22.2 percent over three years and 63.4 percent since inception for the same period.
Private equity and special situations accounted for 13.3 percent of the total portfolio as of 30 September.
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