Minnesota re-ups with three GPs, including $100m to Lexington

The US state's investment board has committed more than two thirds of newly-deployed capital to private equity funds specialising in the energy sector.

The Minnesota State Board of Investments committed up to $350 million in private equity re-ups with $250 million going toward energy sector funds, executive director Howard Bicker told Private Equity International.

This included up to $150 million for Natural Gas Partners’ recently launched tenth fund, which is targeting $4 billion for oil and gas production, mid-stream, oil field services, power companies and global warming related investments. Minnesota committed an additional $100 million to The Energy & Minerals Group’s second fund focusing on the energy and minerals sectors.

Bicker said the re-ups were not part of any energy or natural resource strategy for the pension fund.

Minnesota also allocated up to $100 million for Lexington Partners for private equity partnerships in the secondary market. Lexington is expected to close on its $6 billion secondaries fund, its seventh, by the end of June. The firm struggled with fundraising after launching during the 2008 financial meltdown, but was able to turn it around by securing approximately $3 billion in preliminary and capital commitments as of last spring.

The state holds 14.1 percent of its combined funds in alternative assets as of 31 March, targeting 20 percent. Last year, around 60 percent of Minnesota’s $6.2 billion alternative asset pool was dedicated to private equity.