Minnesota Board Pumps $775M into Private Equity, Credit Portfolio

The Minnesota State Board of Investment’s $128 billion portfolio saw $775 million in private markets commitments at its November meeting last week.

The decision follows the fund’s addition of more than $600 million in August, which included allocations to Blackstone and Brookfield real estate funds.

Two of the five approved funds were offered by existing managers Court Square Capital and TPG Capital.

Court Square has typically invested in middle market growth companies in North America. Court Square Capital Partners V, which invests in business services, healthcare, industrial, technology, and telecommunications, received a $150 million pledge from trustees.

TPG Growth VI, which invests in growth equity and control growth equity buyouts spanning business services, consumer, healthcare, internet, digital media & communications, and software & enterprise technology, received another $150 million commitment.

The new managers for the private equity program are Stellex Capital and Vance Street Capital.

A $200 million commitment was made to Stellex Fund III, which invests in middle-market firms in North America and Europe with a focus on control and deep value.

Vance Street Capital has allocated $125 million to its Vance Street Fund IV, which will seek control investments in the medical, life sciences, aerospace, defense, and industrial technology sectors.

Torchlight Investors was the sole recipient of credit. Torchlight Debt Opportunity Fund VIII received a $150 million commitment. The firm’s niche commercial real estate debt strategy is technically a private credit strategy, but it has attracted many public pension investors, including the Florida State Board of Administration, the Illinois State Universities Retirement System, the Illinois Municipal Retirement Fund, and the Ventura County Employees’ Retirement Association.