Montana BOI Allocates $550M Across Multiple Funds
The Montana Investment Board, which is responsible for the oversight of numerous state-wide investment portfolios, including pensions, committed $550 million to real estate, private markets, and real assets at its most recent board meeting.
Two additional funds were chosen within the real estate sector. A $100 million allocation was made to the Walton Street Real Estate Debt Core Fund, while $50 million was allocated to Westport Capital Partners’ NewCold Fund III, according to the November meeting documents.
Walton Street Capital specializes in US-based private commercial real estate debt. Westport Capital Partners NewCold III is a global cold-storage fund looking to raise $2.5 billion. The firm has also received investments from the New York State Common Retirement Fund, the Florida State Board of Administration, and the New Mexico State Investment Council.
Within private markets, FLC Bighorn Investment Fund saw the largest commitment of $100 million. Managed by Fisher Lynch Capital, the fund focuses on the firm’s distinct private equity co-investing strategy.
Buyout fund Rubicon Partners Fund IV received a $50 million commitment, while another $50 million was added to Tenex Capital Partners’ Fund IV. The strategy covers a wide range of sectors, but it has recently focused on the diversified industrial sector.
In credit, allocations of $50 million each were made to Stellus Credit Fund IV and GoldenTree Tactical Opportunities Fund and Deerpath Evergreen Advantage.
Stellus Capital Management focuses on private credit opportunities originated and underwritten by Stellus in a variety of industries throughout the U.S. and Canada. The team focuses on direct lending investments in industries including business services, consumer and retail, healthcare, industrials, and media.
GoldenTree’s Tactical Opportunities strategy was introduced this year as a global credit strategy that captures opportunities across asset classes while allowing for increased allocation to private asset classes such as distressed, private credit, and structured credit, which have historically delivered excess returns.
The Deerpath Evergreen Advantage fund, which received an additional $35 million and $15 million from other Montana state funds, is a direct lending fund managed by Deerpath Capital. The firm tends to lend to private equity-backed businesses.
Within real assets, the $28 billion Montana State Investment Board allocated $50 million to Ecosystem Investment Partners Fund V. Ecosystem Investment Partners manages the natural resources-focused investment strategy, which was launched in 2006 with an emphasis on environmental protection.
Real estate comprises the portfolio’s largest alternative investment program at $2.7 billion. Private investments are at $2.5 billion.