Alaska Permanent Fund Corporation, the largest sovereign wealth fund in the United States, committed $80 million to Asia-focused alternative investment funds in the quarter ended March 31, 2021.
According to material for its board of trustees quarterly meeting this week, Alaska Permanent committed a total of $309 million to private equity and special opportunities funds in the Jan-March quarter. Of this, $50 million was allocated to Chinese private equity firm Boyu Capital’s fifth fund, Boyu Capital Fund V, and Boyu Capital Growth Fund I, a growth vehicle launched in March 2021.
Reuters reported in February that Boyu Capital Fund V is targeting to raise as much as $6 billion and is likely to close in the near term. The Chinese firm closed its fourth fund at $3.6 billion earlier this year.
The two Boyu Capital funds had previously secured a total capital commitment of $30 million from the New York State Common Retirement Fund (NYSCRF).
Alaska Permanent also committed $14 million to Bain Middle Market Japan fund, Bain Capital’s first Japan buyout fund focused on mid-sized companies in the country. Launched in September 2020, the fund was reported to have recently closed at 110 billion yen.
Meanwhile, the US wealth fund also closed a $16 million follow-on co-investment in Global Infrastructure Partners’s Vena Energy, a Singapore-based renewable energy developer.
Vena Energy develops, constructs, owns and operates solar photovoltaic power generation, wind power generation and energy storage projects in the Asia-Pacific region. According to its website, the firm has eighteen offices across Australia, India, Indonesia, Japan, the Philippines, Singapore, South Korea, Taiwan and Thailand.
The APFC recorded a 22.69% total return for the first three quarters of the fiscal year, mostly fueled by private and public equity returns that stood at 18.77% and 8.49%, respectively.
Its portfolio is currently 39% allocated to public equity, 21% to fixed income, and 40% to alternative investments.
The figures represented a decrease in public equity and an increase in alternative investments compared with the quarter ended December 31, 2020.
In terms of geographic exposure, the US continues to be its largest market with 76% of overall exposure, followed by non-US developed (14.7%), emerging markets (6.6%), frontier markets (0.3%), and other markets (1.9%).