Alaska to invest $750m in Abu Dhabi-backed equity firm

The US state’s sovereign wealth fund agreed the deal with the Carlyle Group
Oil and gas rig, energy, black gold
By Shane McGinley
Tue 23 Jul 2013 11:43 AM

Alaska has agreed to invest $750m in funds managed by the Carlyle Group, the US private-equity firm in which Abu Dhabi’s Mubadala Development Company owns a 7.5 percent stake, with the focus mainly on investments in the natural resource, metals, energy and agricultural sectors.

The Alaska Permanent Fund Corporation, an independently managed, state-owned company with an estimated capital of around $46.8bn, will invest in a number of funds through the Carlyle Group.

“The focus of the program will be global natural resource investment strategies,” APFC said in a statement.

Around $375m will be invested in three of Carlyle’s private equity funds: the Carlyle International Energy Partners, NGP Natural Resources XI and a soon to be formed third fund which will focus on agribusiness or metals/mining investments.

A further $375m will be used to fund Carlyle-managed investments focused on sectors such as natural resources, metals and energy.

“These commitments will not be funded immediately; rather they will be drawn down as needed over a period of approximately three years. The funding for capital calls is expected to come from selective reductions across the Fund’s stock portfolios as well as the cash portfolio,” APFC added.

The Alaska sovereign wealth fun also agreed to invest $1bn with Carlyle’s rival Blackstone and $100m with CS Capital to acquire US industrial real estate assets.

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