WSIB Targets Energy Transition, Aircraft Leasing in $1.3B Spree
The Washington State Investment Board (WSIB) approved more than $1.3 billion in new private market commitments at its latest meeting, extending an already aggressive pacing plan across real assets and private equity. The moves come as the $192 billion portfolio continues to lean on illiquids for return, with tangible assets returning 8.5% and private equity 9.7% for the year through March 31, and the overall fund up 10.88%.
On the real assets side, WSIB allocated $550 million, supported by consultant Meketa. The board committed $300 million to LS Power Equity Partners VI, an infrastructure fund focused on North American energy, spanning generation, transmission, and storage. LS Power is targeting $4 billion for the vehicle, which has also attracted smaller tickets from peers such as Pennsylvania PSERS and the Virginia Retirement System.
Another $250 million went to Babcock & Brown Aircraft Management Incline III Aviation Limited Partnership. The manager, one of the world’s largest aircraft lessors, oversees more than 500 planes and roughly $21 billion in aviation assets.
WSIB also reaffirmed its long-standing tilt toward private equity, where it remains heavily invested despite returns trailing its custom benchmark. The largest single ticket was a $400 million commitment to KKR Asian Fund V, a pan-Asian buyout vehicle targeting 20–30 deals across Australia, Greater China, India, Japan, South Korea, and Southeast Asia.
Additional private equity capital went to tech-focused and regional mid-market strategies. WSIB committed $200 million to PSG Europe III, backing lower mid-market software and tech-enabled services in areas such as payments, ERP, cybersecurity, and AI. A second $200 million allocation went to Endeavour Capital Fund IX, which targets lower middle-market companies in the Western U.S. across consumer, industrials, business services, and healthcare. The board has backed Endeavour strategies since 2003.
As of March 31, WSIB held $53 billion in private equity, $34 billion in real estate, and $13 billion in tangible assets, including infrastructure. The latest commitments follow more than $1.8 billion of private equity and credit allocations in April, underscoring the fund’s continued conviction in private markets as a core return engine.