Secondaries make up 10% of Montana’s PE portfolio – updated

Montana Board of Investments has committed to secondaries fund managers including Axiom, Lexington and Tenex.

Montana Board of Investments‘ private equity portfolio has a 9.8 percent exposure to secondaries funds, according to documents from its November board meeting.

The roughly 10 percent exposure is valued at $165.9 million, of which $40 million is unfunded.

Montana’s most recent secondaries commitments include $25 million to HarbourVest Partners’ Dover Street VIII and $20 million to Tenex Capital Partners – Secondary.

In total there are eight secondaries funds in the portfolio which are generating a 1.47x investment multiple and a 13.67 net internal rate of return since inception, as of 30 June.

Secondaries funds are generating the third highest IRR in the portfolio. Distressed funds lead, generating 24.09 percent since inception, followed by venture capital which is generating a 15.73 percent IRR since inception, as of 30 June.

The Helena-based pension allocates about 11 percent of its assets to private equity. Total, it manages $9.8 billion of assets as of 30 September.

Fund name Vintage year Commitment Net IRR (%) Investment multiple
HarbourVest Dover Street VII 2008 $2,000,000 13.54 1.49
HarbourVest Dover Street VIII 2012 $25,000,000 64.39 1.41
Lexington Capital Partners V 2001 $50,000,000 18.44 1.68
Lexington Capital Partners VI 2005 $50,000,000 7.34 1.36
Lexington Capital Partners VII 2009 $45,000,000 19.75 1.44
Lexington Middle Market Investors II 2008 $10,000,000 14.96 1.36
Portfolio Advisors Secondary Fund 2008 $15,000,000 17.86 1.52
Tenex Capital Partners – Secondary 2012 $20,000,000 12.16 1.16

Source: Montana Board of Investments

This story has been updated to remove fund of funds manager Axiom Asia from the list of secondaries funds and replace it with HarbourVest Dover Street VII and VIII.