The US pension fund Montana Board of Investments is investing in two Asian funds.
Montana Board of Investments has made a commitment of $50 million to Singapore-based private equity firm Crescent Point Group’s Crescent Asia Consumer and Deep Value Fund III, according to the minutes of the US pension fund’s latest quarterly meeting.
As of September 30, 2021, the $15 billion US pension fund has made a 14.8% allocation ($2.21 billion) to private investments, where 24% of the private investments portfolio is allocated to ‘Rest of the world’, and the remaining 76% is North America-centric.
Its fund of funds allocation stood at 23%, while the rest were direct and primary investments. The private investment portfolio, which is focused on existing buy-out and venture capital relationships but is upping its allocation to credit strategies and sector specialists, had a net cash flow of $83.46 million.
Crescent Point is a China- and Southeast Asia-focused private equity firm that focuses on consumer sectors, according to its website.
In 2018, the Montana Board of Investments had injected $50 million into Crescent Point’s Crescent Asia Consumer and Deep Value Fund II.
OCP Asia’s fund
The pension fund is also committing $100 million to Hong Kong private debt firm OCP Asia’s OCP Asia Opportunities Fund as part of its real estate investments.
According to the notes, the pension fund’s US-centric real estate portfolio’s total net asset value is worth around $1.45 billion, or 10.1% of the pension fund’s portfolio, and has a positive cash flow of around $4 million. Its total returns since inception came in at 4.41%.
Founded in 2004, OCP Asia provides debt financing to small- and medium-sized companies across the Asia Pacific. It has completed more than 116 secured direct lending investments totalling around $5 billion, according to its website. Some investments include Australia’s mining equipment hire company National Plant & Equipment and hospitality firm Mantle Group, and Indian shopping media HomeShop18.