Alaska Retirement Adds $100M to Credit Fund
The Alaska Retirement Management Board, which manages $40 billion in assets, added a private debt investment to its portfolio following the approval of private equity pacing at the end of last year.
Private equity has been a part of the pension fund’s portfolio for close to 25 years, and it is a large allocation at 14% of the portfolio. It has also been a top-performing asset class for a long time and is expected to see another $700 million in allocations in 2023 to maintain that 14% allocation. Meanwhile, the pension system has a 19% allocation to fixed income, where private debt is housed.
In February, officials selected Ares Management’ Ares Pathfinder Core Fund for a $100 million mandate. The fund is expected to pursue a differentiated strategy of providing tailored financial solutions for owners of large, diversified portfolios of assets that generate predictable and contractual cash flows throughout market cycles.
The latest fund in the Pathfinder series attracted $3.7 billion in 2021.