Private Equity
At a Glance
Key Portfolio Figures
18%
FY26 Target Allocation
$14.9B
as of June 30, 2025
$25M - $100M
Fund and Co-Investment Range
15%-25+%
IRR Underwriting Target
3 - 10+ Years
Targeted Investment Horizon
Our Private Equity Approach
How We Invest
- Fund Commitments: Fund commitments represent the largest portion of the Private Equity portfolio’s investing activities. Identifying exceptional managers and investing with them over time is the key determinant of our long-term investment success.
- Co-Investments: Co-investments enable the team to execute on APFC’s thematic areas and also identify targeted exposures to certain geographies, investment types, and sectors to build a well-diversified portfolio. APFC engages in pre-bid and post-bid syndication processes and can execute on tight timelines.
Performance
APFC seeks to general strong absolute long-term returns that compensate us for the illiquidity and additional risk taken compared to other asset classes. On a relative basis, our goal is to outperform the median Private Equity benchmarks.
Performance reports for the portfolio can be found in the monthly performance reports and in board meeting packets.
Competitive Advantages
APFC's Private Equity team has a disciplined and proven approach to its investment strategy.
- Patient: APFC’s permanent capital profile allows us to take advantage of long-term trends and withstand short-term volatility. The average targeted investment duration is 5 years.
- Flexible: No predetermined asset type, geography, yield profile, industry sector, or legal structure. Each investment is designed to generate the highest possible risk-adjusted net-of-fee returns on invested capital within established risk guidelines.
- Global: Because economic environments vary across geographies, the breadth of our global portfolio and investor network diversifies risks and allows APFC to target growth across many regions. The portfolio currently includes investments across the U.S., Europe, Asia, and Latin America.
Program Overview
Alaska In-State Investment Program
The Alaska In-State Investment Program was established in 2018 to pursue risk-adjusted returns by investing in Alaska-based private market opportunities through external fund managers. Authorized by the APFC Board of Trustees under Board Resolution 18-03, the program aligns with the statutory requirements of AS 37.13.120(c), which directs preference for in-state investments when they offer risk and return characteristics comparable to or better than those of alternative opportunities. In April 2023, through Resolution 23-01, the Board paused new capital allocations, shifting focus to managing existing investments and realizing long-term value.
As part of APFC’s broader private markets portfolio, the program operates under a disciplined model in which independent third-party managers, rather than APFC, make investment decisions. This structure reinforces professional independence while supporting the Corporation’s fiduciary obligations. The program operates under the Prudent Investor Rule in accordance with AS 37.13.120(a), emphasizing diversification, long-term value preservation, and total return.
Performance is evaluated within the Private Equity asset class using established benchmarks, including vintage year comparisons. Due to confidentiality requirements under AS 37.13.200, individual investment results are not publicly disclosed; instead, aggregated performance is provided through APFC’s monthly performance report.
Current investments are managed by external fund managers: Barings LLC and McKinley Capital Management LLC.
Barings, LLC
Contact: Mina Nazemi, Managing Director
Email: AlaskaFutureFund@barings.com
Website: barings.com
McKinley Capital Management, LLC
Contact: Investor Relations
Email: investorrelations@mckinleycapital.com
Phone: (907) 563-4488
Website: mckinleycapital.com
Strategy & Focus Area
Private Equity Mandate
APFC's private equity program seeks to build a diversified, global private equity portfolio, focusing on buyout, growth equity, venture capital, energy and other opportunities through fund partnerships, secondary acquisitions and co-investments. We seek diversification across stage, industry, geography, and other factors.