Alaska Permanent Fund Corporation (APFC) plans to deploy up to $2.5bn (€2.1bn) into real estate and private-income investments, which include infrastructure, by the middle of next year.
The $65.3bn sovereign wealth fund manager will make a combination of direct investments, co-investments and fund investments, depending on opportunities, during the 2019 fiscal year, according to a board meeting report.
Earlier this year, APFC sold close to one-quarter of its real estate portfolio by disposing of its 50% stake in Simpson Housing for $1.4bn. The sale meant that the Alaska Permanent Fund’s exposure to real estate was at 6.4%, well below its target allocation of 11%.
APFC expects to continue with its build-to-core real estate investment strategy, focusing on multifamily and industrial assets in the US.
It also expects to invest some capital in international real estate.
For infrastructure, APFC will focus on North American assets, which currently comprise only 29% of the fund’s infrastructure exposure. More than half of the infrastructure portfolio is made up of European investments.