By Muskan Arora
The $28bn
Montana Investment Board disclosed $332m in new commitments within its FY 2025
plan.
The system
launched its co-investment program within its private equity sleeve in July and
expects consultant RVK to present asset allocation recommendations in October.
Within its
real estate sleeve, the system committed $100m to Walton Street Real Estate
Debt Core Fund from the pension fund’s Consolidated Asset Pension Pool
and $50m from the Trust Funds Investment Pool, as per recent meeting documents.
The fund offers both floating and fixed-rate debt optimized by stabilized or nearly stabilized assets.
In the current environment, the debt market remains liquid for the right property.
The pricing dislocation remains depressed with transaction volumes but is slowly picking up.
Within its real assets sleeve, MIB allocated $82m to Copenhagen Infrastructure V, with a focus on greenfield investments within large-scale renewable energy infrastructure.
The fund
aims for investments across technologies such as contracted offshore wind,
energy storage, onshore wind and solar in North America, Western Europe and
Asia Pacific.
Within the RA sleeve, the system noted US oil production to remain near all-time highs, OPEC+ maintains production cuts through Q4 ‘24.
US housing starts remain sluggish, down 5.5% in May, up just 3% in June.
The system
committed $50m to Tenex Capital Partners Fund IV and $100m to FLC Big
Horn Investment Fund, as a part of its FY 2025 plan.
Tenex Fund
IV is a buyout fund focused on investing in underperforming mid-market
businesses in North America within diversified industrials, business & tech
services, and healthcare.
“Following a stabilizing trend over the past several quarters, deal making for the first half of 2024 appears to have recovered. PE buyouts have seen the best six month stretch since 2022,” as stated in the recent meeting materials, presented in the system's staff.
(Source: PitchBook as of June 30)
Further,
another commitment of $40m to Builders VC Fund III was disclosed as a
part of FY 2024 plan.
Builders VC is a venture capital fund focused on investing in early-stage
technology companies.
In July, the $23.1bn Los Angeles City Employees’ Retirement System
committed $20m to the fund.
