FUND NEWS                               Jul 24, 2008

Board hires infrastructure managers, adds to private equity

JULY 24 - The Alaska Permanent Fund Corporation Board of Trustees approved allocations to new infrastructure funds at Goldman Sachs and Alinda Capital Partners at a special board meeting on July 23.

“A pooled fund has a maximum size at which it can still effectively move in the market,” said Board Chair Steve Frank. “Managers close funds when they reach capacity and sometimes open subsequent funds. We’re fortunate to be able to invest in the second generation of funds at both of these firms, which have experience in infrastructure investing and have been successful with their prior funds.”

The Board allocated $500 million to the Goldman Sachs Institutional Infrastructure Partners II fund and $250 million to the Alinda II fund.

In an unrelated action, the Board also approved an additional $400 million allocation to private equity gatekeeper Pathway Capital Management, to create a “fund of one,” in which the Permanent Fund is the only contributor. This new fund will place capital with small and mid-market private equity funds, which invest in companies with a total enterprise value of $1 billion or less. Currently the Fund’s private equity portfolio is concentrated on funds that invest in companies that are larger than the $1 billion threshold.

The next scheduled Board of Trustees meeting is the annual meeting, which will be held September 22 & 23 in Juneau.